The Federal Reserve says ‘The US is trialling ways of bracing the American public for higher inflation rates as a fresh presidency attempts to heal an economy crippled by the ongoing pandemic’, according City A.M.
Information released from a Federal Reserve policy meeting last month revealed that Powell and Fed officials plan to continue to keep their easy monetary policy going to aid the struggling U.S. economy.
The Biden administration intends to launch a $1.9 trillion Covid Relief Package, which the House Budget Panel passed today with a 19-16 vote.
The Fed, however, are concerned that this package would increase inflation.
The report states, The Fed has set a maximum inflation target of two per cent this year, as prices are expected to bounce amid the economy’s pandemic recovery.
Supposedly annual inflation is currently at 1.4% in America.
‘Boston Fed president Eric Rosengren said this afternoon that inflation is unlikely to hit the central bank’s target on a sustained basis in the coming year, though he warned prices will likely jump as restrictions are lifted in the US.’
Rosengren said “we are going to see somewhat of a pickup in inflation.”
Food and energy prices may go up as certain areas of the economy are facing some shortages. But what we really want for inflation is kind of the broad-based inflation rate to be at a sustained level of two per cent. I don’t think we are going to see that this year. I would be surprised if we see it before the end of next year.
The report continues by stating, Fed officials said they believe the threat posed by subdued inflation is greater than the danger of rapidly rising prices, “although most still viewed the risks as weighted to the downside”.
With a jump in some prices expected in the coming months, many Fed officials “stressed the importance of distinguishing between such one-time changes in relative prices and changes in the underlying trend for inflation,” according to minutes released today.
A “number of” central bank officials said they saw such price increases on the horizon for goods “whose production has been subject to supply chain constraints, or soon could be”.
Others said they anticipated that “a possibly abrupt return to normal levels of activity could result in one-time increases in certain prices,” the Fed said.
Major US food producers including Heinz and Duncan Hines cake-maker Conagra this week said they were mulling possible price hikes this year as ingredients become increasingly expensive due to high demand during the pandemic.
However, the Fed said it did not expect price hikes to sustain in the long-term.
Minutes showed the US bank predicts prices will move higher “along a trajectory consistent with achieving the Committee’s objectives over time, supported by stronger economic activity, widespread vaccinations and the associated reduction in social distancing, and accommodative fiscal and monetary policy”.
We’re going to be patient. We’ll seek inflation moderately above two per cent for some time… The way to achieve credibility on that is to actually do it. And so that’s what we’re planning on doing.
Fed Chair President Jerome Powell
Going Crypto
Today former Fed Chair President and Biden’s U.S. Secretary Treasurer announced her support for the Federal Reserve to monitor and control a new digital dollar.
In an interview for The New York Times’ DealBook DC Policy Project, Yellen believes it makes sense for the Federal Reserve to look into a digital dollar.
She said a digital dollar maintained by the Feds based on a blockchain, could result in,
Faster, safer and cheaper payments.
What would be the impact on the banking system? Would it cause a huge movement of deposits out of banks and into the Fed? Would the Fed deal with retail customers or try to do this at a wholesale level? Are there financial stability concerns? How would we manage money laundering and illicit finance issues? There’s a lot of things to consider here, but it’s worth looking at.
Yellen also gave continued criticism on Bitcoin.
I don’t think that Bitcoin is widely used as a transaction mechanism. It’s an extremely inefficient way of conduction transactions and the amount of energy that’s consumed in processing those transactions is staggering.
AUTHOR COMMENTARY
[22] Rob not the poor, because he is poor: neither oppress the afflicted in the gate: [23] For the LORD will plead their cause, and spoil the soul of those that spoiled them. Proverbs 22:22-23
Inflation? Really? I would have never guessed!?
I am being satirical of course. Give me a break, no kidding there will be more inflation!
- Housing prices have surpassed 2005’s peak level (and then the housing bubble popped years later… a repeat is immanent)
- Crop prices are rising
- Lumber prices are rising
- Have you been to the pump lately?
- The most notable is the grocery store and meat especially
- New vehicles continually get more and more expensive each year
- Things in general were already inflating some more
And this list could keep going.
But this is how sickening it all is. THEY created the problem by locking down the economies of the world, and now WE the peasants get to pay for it with a hidden tax of inflation. And notice I said ‘they.’ WinePress readers know what I am talking about, but if you are new here, the Feds have openly admitted to shutting down the economies (and it has nothing to due with Covid).
When the Feds say “easy monetary policy,” they mean easy MONEY. This is what I have explained they are doing in multiple reports. This is why the stock market continues to see record highs even though the real economy, the middle class, is being extinguished. The more debt and money that is created out of thin air, the higher stocks go; as the Feds continue to buy it all up and put themselves in the position of the being the buyer and lender of last resort.
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
I also love how they act worried (as if they care about us) that Biden’s stimulus will create inflation. Where was this talk when Trump signed in $6.2 trillion and $900 billion in 2020? Of course not, Americans “needed it.” Do not listen to the media when they try and say it was $2.2 trillion. Where did that other $4 trillion go, Mr. President?
As for Yellen, she is saying precisely what we have warned and alerted you of. The central banks are looking to create digital currencies. That is the name of the game. They have to get rid of the dollar and monopoly money currencies to issue their new tracked and traced digital and eventual biometric currencies.
Take note of Yellen’s slant against Bitcoin. The WinePress does endorse getting into Bitcoin, as explained in our study Why a Christian should not invest in gold and silver. It is destined for failure in the end.
These people just make me sick. They will have their day, that’s a guarantee.
[15] He hath swallowed down riches, and he shall vomit them up again: God shall cast them out of his belly. [16] He shall suck the poison of asps: the viper’s tongue shall slay him. [17] He shall not see the rivers, the floods, the brooks of honey and butter. [18] That which he laboured for shall he restore, and shall not swallow it down: according to his substance shall the restitution be, and he shall not rejoice therein. 19] Because he hath oppressed and hath forsaken the poor; because he hath violently taken away an house which he builded not; [20] Surely he shall not feel quietness in his belly, he shall not save of that which he desired. [21] There shall none of his meat be left; therefore shall no man look for his goods. [22] In the fulness of his sufficiency he shall be in straits: every hand of the wicked shall come upon him. [23] When he is about to fill his belly, God shall cast the fury of his wrath upon him, and shall rain it upon him while he is eating. [24] He shall flee from the iron weapon, and the bow of steel shall strike him through. [25] It is drawn, and cometh out of the body; yea, the glittering sword cometh out of his gall: terrors are upon him. [26] All darkness shall be hid in his secret places: a fire not blown shall consume him; it shall go ill with him that is left in his tabernacle. [27] The heaven shall reveal his iniquity; and the earth shall rise up against him. [28] The increase of his house shall depart, and his goods shall flow away in the day of his wrath. [29] This is the portion of a wicked man from God, and the heritage appointed unto him by God.Job 20:15-29
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