“You betcha I’m long gold. That is the definition of inflation. Take a fresh look at your 401(k) allocations and ask yourself the following questions: The Fed won’t carry the day forever. Z. zombiebeach. Peter said if Powell really believes there is no limit to the size of the balance sheet — that is a very scary thought. Do you want a higher IQ? But just giving a drug addict more drugs in ever-increasing doses, which is all the Fed is doing, that’s never going to work.”. Powell continued to insist the Fed wasn’t planning on negative interest rates. Binder asked Powell if there is any limit to how much the Fed’s balance sheet can grow. JPow Jerome Powell GIF SD GIF HD GIF MP4. His next job was a clear indicator that he was no longer concerned about earning a paycheck. Share to Reddit. Do you want to become a Stonk Market Genius? If you are looking for an 8-10% annualized return these days, you will have to find them in the equity market given where interest rates are currently quoted at. Washington – Jerome Powell, Federal Reserve Chairman, stated at a recent press conference that people who save money are idiots. “If you are saving money you are a complete idiot,†Jerome Powell said to a crowd of reporters. “With interest rates at zero and hyperinflation in the near future there is literally no incentive for […] This process is automatic. US Federal Reserve chairman Jerome Powell finally surrendered last week and gave his . “We need to print the money to see where it goes.”. In fact, had the Fed let rates go up, that would have actually solved the problem. Copy embed to clipboard. []))). ’ The argument continues today. Peter said Powell is basically treating the economy like a terminally ill patient who is going to die anyway. Share to Tumblr. Why demand proof for negative rates? If you answer yes to any of these, consider giving your email to me! J Pow. Jerome Powell and friends have likely ensured the 2020 recession will be the shortest on record. Federal Reserve. That’s all Powell is doing is inflation. Share to iMessage. Coronavirus spread prompts Federal Reserve to slash rates, In a surprise move, the Federal Reserve cut its benchmark interest rate by a sizable half-percentage point Tuesday in an effort to support the economy in the face of the spreading coronavirus. The balance sheet has ballooned to approximately $7 trillion in a matter of months. I think if the market demands it, then the Fed will supply it.”. I mean, they’re already rising. It means there is no limit to the depths to which the dollar can plunge. We will be like Black Rock times 100.”, Over the past 50 years the United States has went from being a net saver to a net spender. Since the financial crisis — when the Fed expanded its balance sheet materially — the  U.S. economy experienced one of the slowest recoveries in history, and value stocks dramatically underperformed growth stocks. He’s worried about falling prices. The Federal Reserve Bank has been a controversial institution since the founding of our country. Of course, there are some prices that have gone down. Federal Reserve Chair Jerome Powell on Tuesday said Congress should err on the side of overdoing it with the next economic relief bill, saying a conservative approach … Please reach out if you have an interest. JPow Jerome Powell GIF SD GIF HD GIF MP4. Z. zombiebeach. Please reload the page and try again. Share to Facebook. Share to Twitter. The average saving rate for most American families is less than 8% per year. Buy Gold the Ultimate Monetary Insurance Policy, vaccinate your portfolio against inflation, Peter Schiff: The Best Election Outcome Is Gridlock, Peter Schiff: Trump Out-Democrats Democrats on Stimulus, Peter Schiff: Trump Tweets the Stimulus Rug Out from Under the Markets, Peter Schiff: Trump COVID-19 Positive; Employment Outlook Negative. It's no secret that easy monetary policy, which began in earnest during the Great Recession of 2008-2009, fuels higher stock prices. “Why should I even save money,” Kelly Watson, 45, said. The site provides unique coverage on the financial industry, stocks, hedge funds and global markets. This weekend, pause that Netflix or Disney+ stream-fest and review your holdings. I plan to and will be looking for more growth opportunities to round out my holdings. Fed policy to keep rates low: Fed will keep low interest rates as economy is 'extraordinarily uncertain', Powell expected summer rebound: Powell: Recovery from coronavirus crisis may begin by summer, will likely be slow. This is precisely why Peter has said you need to vaccinate your portfolio against inflation. So, the furthest thing from Powell’s mind is a problem with consumer prices going up. (March 3), Fed will keep low interest rates as economy is 'extraordinarily uncertain', Powell: Recovery from coronavirus crisis may begin by summer, will likely be slow, Your California Privacy Rights/Privacy Policy. The Fed acted swiftly and powerfully, snapping up corporate bonds and ETFs to provide liquidity to the credit markets. Expand the money supply. “My sole focus is to make the stock market go up. I just spend all of my money on this crap made in China right when I get my paycheck.”, “Kelly is as smart woman,” Jerome Powell stated. Powell admitted that the central bank had “crossed a lot of red lines,” but insisted he was comfortable with the actions given “this is that situation in which you do that, and you figure it out afterward.”, In his podcast, Peter Schiff called it the Nancy Pelosi version of monetary policy. The Fed just cut rates again. In December 2008, the Fed initiated “quantitative easing” and by March 9, 2009, stocks began a 10-year bull run. Well, there’s no proof that zero works either, and we’re at zero.”. What Powell said during that interview could have helped the price of Bitcoin go above the $9,900 level earlier today. SchiffGold Friday Gold Wrap Oct. 23, 2020, Wave of Corporate Mergers Could Put More Americans Out of Work. CAPTION. High quality Jerome Powell Printing Money gifts and merchandise. In fact, maybe it’s the rate cuts that are perpetuating the problem. Jerome Powell lays out his thoughts on getting the economy back to its pre-coronavirus numbers.