LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Precious Metals Update Video: Big upside to the breakout in the metals markets?
By: Ira Epstein

Gold Resource Corporation Reports Preliminary Second Quarter Production and Positioned to Increase 2019 Annual Outlook
By: Gold Resource Corporation

Asian Metals Market Update: July-18-2019
By: Chintan Karnani, Insignia Consultants

Monetary Metals Don’t Need a "Gold Standard" Proxy System
By: Stefan Gleason, Money Metals Exchange

Precious Metals Update Video: Gold is in a pause, momentum on the downside
By: Ira Epstein

Currency & Gold (video) Update
By: Gary Savage

We Caught The Bitcoin Bottom And Then The Top - Now What?
By: Avi Gilburt

Facebook's Version of 'How to Serve Man'
By: Rick Ackerman, Rick's Picks

Could A Deutsche Bank Collapse Crash The Markets?
By: Dave Kranzler

Here’s What the Market Did EVERY TIME the Fed Cut Rates During an Economic Expansion
By: Frank Holmes, US Funds

 
Search

GoldSeek Web

 
Fed Chief Straps on the Knee Pads

By: Rick Ackerman, Rick's Picks

 -- Published: Thursday, 11 July 2019 | Print  | Disqus 

Fed Chief Powell supposedly has strong support inside Congress to fend off Trump’s calls for lower interest rates. How do we know this? Well, there was this headline atop the lead story in Wednesday’s Wall Street Journal: ‘Powell’s Support Inside Congress Is Deep’. And here was the sub-hed, in case you missed the point: ‘Lawmakers on both sides say they would oppose any bid to oust the Fed chairman’. Perhaps it was just bad timing, but the financial world’s newspaper of record has rarely looked more stupid. Oust Powell??  Give us a break!  Less than a year into the job, the guy is looking like a potential hero in the promiscuous borrower/lender Hall of Fame, a worthy successor to ‘Easy Al’ Greenspan.  For at the moment readers were savoring the WSJ story with their morning coffee, Powell was on Capitol Hill, telling Trump and the loose-credit rabble exactly what they wanted to hear — i.e., that money can be made to grow on trees, and that he will be more than happy to make this happen later in the month, when the FOMC next meets. On this news, U.S. stocks and gold shot higher, yields fell, and on Wall Street, at least, all seemed right with the world.

If there is any surprise in this, it is Powell’s obligingly donning the Fed chairman’s traditional knee pads without making any of the usual face-saving obfuscations. You’d think he would at least feign token resistance, since he knows how badly he is being played by Trump and Wall Street. For make no mistake, by putting the U.S. on a likely course toward negative interest rates, he has one-upped even his philosophical mentor, Easy Al. Sucking up to monetary doves and giving them a whiff of monetary cocaine with the broad stock averages near record highs and unemployment at a 50-year-low is an all-in bet that Powell cannot possibly win, since recessions do happen (and the next one promises to be a real doozey).

Confirming Our Worst Fears

By capitulating when U.S. prosperity is at flood tide, the Fed chief looks like a wimp and a patsy. He will be judged even more harshly by posterity if he is still in the driver’s seat when America’s long expansion ends. Powell could say things now that might help him save face later:  "The economy is strong and looks like it will need no help, but we will certainly keep our options open." But instead of employing cryptically nuanced double-speak like all Fed chairmen before him, he has embraced the arguments of Trump and the rabble by expressing concern that the trade war and "global uncertainties" will eventually end the good times. Of course they will, regardless of whether credit stimulus keeps the music playing for a little longer. But if "managing expectations" is Powell’s job, hitting the monetary panic button as he is about to do could backfire by confirming our worst fears about the imminence of a day of reckoning.
Fed Chief Powell supposedly has strong support inside Congress to fend off Trump’s calls for lower interest rates. How do we know this? Well, there was this headline atop the lead story in Wednesday’s Wall Street Journal: ‘Powell’s Support Inside Congress Is Deep’. And here was the sub-hed, in case you missed the point: ‘Lawmakers on both sides say they would oppose any bid to oust the Fed chairman’. Perhaps it was just bad timing, but the financial world’s newspaper of record has rarely looked more stupid. Oust Powell??  Give us a break!  Less than a year into the job, the guy is looking like a potential hero in the promiscuous borrower/lender Hall of Fame, a worthy successor to ‘Easy Al’ Greenspan.  For at the moment readers were savoring the WSJ story with their morning coffee, Powell was on Capitol Hill, telling Trump and the loose-credit rabble exactly what they wanted to hear — i.e., that money can be made to grow on trees, and that he will be more than happy to make this happen later in the month, when the FOMC next meets. On this news, U.S. stocks and gold shot higher, yields fell, and on Wall Street, at least, all seemed right with the world.

If there is any surprise in this, it is Powell’s obligingly donning the Fed chairman’s traditional knee pads without making any of the usual face-saving obfuscations. You’d think he would at least feign token resistance, since he knows how badly he is being played by Trump and Wall Street. For make no mistake, by putting the U.S. on a likely course toward negative interest rates, he has one-upped even his philosophical mentor, Easy Al. Sucking up to monetary doves and giving them a whiff of monetary cocaine with the broad stock averages near record highs and unemployment at a 50-year-low is an all-in bet that Powell cannot possibly win, since recessions do happen (and the next one promises to be a real doozey).

Confirming Our Worst Fears

By capitulating when U.S. prosperity is at flood tide, the Fed chief looks like a wimp and a patsy. He will be judged even more harshly by posterity if he is still in the driver’s seat when America’s long expansion ends. Powell could say things now that might help him save face later:  "The economy is strong and looks like it will need no help, but we will certainly keep our options open." But instead of employing cryptically nuanced double-speak like all Fed chairmen before him, he has embraced the arguments of Trump and the rabble by expressing concern that the trade war and "global uncertainties" will eventually end the good times. Of course they will, regardless of whether credit stimulus keeps the music playing for a little longer. But if "managing expectations" is Powell’s job, hitting the monetary panic button as he is about to do could backfire by confirming our worst fears about the imminence of a day of reckoning.
Fed Chief Powell supposedly has strong support inside Congress to fend off Trump’s calls for lower interest rates. How do we know this? Well, there was this headline atop the lead story in Wednesday’s Wall Street Journal: ‘Powell’s Support Inside Congress Is Deep’. And here was the sub-hed, in case you missed the point: ‘Lawmakers on both sides say they would oppose any bid to oust the Fed chairman’. Perhaps it was just bad timing, but the financial world’s newspaper of record has rarely looked more stupid. Oust Powell??  Give us a break!  Less than a year into the job, the guy is looking like a potential hero in the promiscuous borrower/lender Hall of Fame, a worthy successor to ‘Easy Al’ Greenspan.  For at the moment readers were savoring the WSJ story with their morning coffee, Powell was on Capitol Hill, telling Trump and the loose-credit rabble exactly what they wanted to hear — i.e., that money can be made to grow on trees, and that he will be more than happy to make this happen later in the month, when the FOMC next meets. On this news, U.S. stocks and gold shot higher, yields fell, and on Wall Street, at least, all seemed right with the world.

If there is any surprise in this, it is Powell’s obligingly donning the Fed chairman’s traditional knee pads without making any of the usual face-saving obfuscations. You’d think he would at least feign token resistance, since he knows how badly he is being played by Trump and Wall Street. For make no mistake, by putting the U.S. on a likely course toward negative interest rates, he has one-upped even his philosophical mentor, Easy Al. Sucking up to monetary doves and giving them a whiff of monetary cocaine with the broad stock averages near record highs and unemployment at a 50-year-low is an all-in bet that Powell cannot possibly win, since recessions do happen (and the next one promises to be a real doozey).

Confirming Our Worst Fears

By capitulating when U.S. prosperity is at flood tide, the Fed chief looks like a wimp and a patsy. He will be judged even more harshly by posterity if he is still in the driver’s seat when America’s long expansion ends. Powell could say things now that might help him save face later:  "The economy is strong and looks like it will need no help, but we will certainly keep our options open." But instead of employing cryptically nuanced double-speak like all Fed chairmen before him, he has embraced the arguments of Trump and the rabble by expressing concern that the trade war and "global uncertainties" will eventually end the good times. Of course they will, regardless of whether credit stimulus keeps the music playing for a little longer. But if "managing expectations" is Powell’s job, hitting the monetary panic button as he is about to do could backfire by confirming our worst fears about the imminence of a day of reckoning.

 


| Digg This Article
 -- Published: Thursday, 11 July 2019 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.