Yesterday the Federal Reserve decided to pause interest rate hikes, keeping them locked at 5.5%, the highest in 22 years. Many were split on what the Fed would do, some believing they would hike it again and others believing they’d pause.

However, this pause indicates that the Federal Reserve is acknowledging the economy is far worse off than they and the government would care to admit to.

As a matter of fact, Treasurer Janet Yellen, the former Fed Chair preceding Jerome Powell, stated earlier this week:

I don’t see any signs that the economy is at risk of a downturn.

Yellen told CNBC, noting that the U.S. labor market also remained strong and inflation was coming down.
Courtesy: Gregory Mannarino

But the data is contrary to reality: inflation is ticking back up, even though she and the Feds have continued to push the narrative that raising rates will slow the pace of inflation.

The U.S. Labor Department’s Consumer Price Index (CPI) rigged and whitewashed numbers rose from 3.2% to 3.7% in August. These numbers exclude food and energy, the two sectors facing the most inflation right now and burning holes in people’s wallets.

https://www.youtube.com/watch?v=TtIm_VOHveE&t=7s

Needless to say, inflation is going back up contrary to Janet Yellen’s claims.

But as for Powell and the rate hikes, though the Feds paused he did heavily insinuate that one final rate hike will come in November.

We are prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we are confident that inflation is moving down sustainably toward our objective.

The fact that we decided to maintain the policy rate at this meeting doesn’t mean we have decided that we have or have not at this time reached that stance of monetary policy that we are seeking.

We need policy to be restrictive so that we can get inflation down to target and we are going to need that to remain to be the case for some time.

Powell said, and that he and his colleagues believe “one more hike” is coming this year

However, he added, “we don’t really know where rates ultimately need to go, and that’s why, again, we are in a position to proceed carefully at this point.”

Moreover, he hinted that rate cuts will come in 2024.


AUTHOR COMMENTARY

The fact that the Federal Reserve elected not to raise rates now should tell you just how bad the economy really is, that the lenders could not afford to have another measly .25% rate hike, tells the story. Corporate earnings for his quarter would have looked pitiful and that could easily cause a ripple effect in the markets and broader economy.

The propaganda machine is doing all that they can to save face and make it sound like things are rosy, but nothing could be farther from the truth, and the truth is the economy is dead and the country is set for major turmoil in the coming weeks and months.

The rich ruleth over the poor, and the borrower is servant to the lender.

Proverbs 22:7

[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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2 Comments

  • They know EXACTLY how bad it is, and are merely fulfilling their purpose according to Vatican orders, as are the Masonic & other orders whose crony purpose was to manage Wall Street to the temptation of obscene profit, the transfer of power & property, real assets & capital, & the destruction of the middle class. The Jews involved are in subservience to the Vatican, having no king but Caesar, & are yet the tail and not the head. The Lord is sovereign over it all, and his purposes in all of it are written, as the focus shifts back to Rome & Israel……and Rome plays the kings of the East, where fiat currency was born/invented of men & devils, imposed by force, even as she played, and will continue to play, those of the West. Until Revelation 18 KJB, at least….and the Lord also uses those powers to try men & as his rod of judgment. Pursue holiness, & seek mercy even in this fallen, the judgment of God: for there is none without sin, no not one.

  • Now I’m going to try to be very careful with how I spend my money. I just moved in Rochester for my new job (I just got promoted to assistant area manager at amazon (the real position name is process assistant )). I am starting to shop at local farms and may be a few stores like wegmans. My rent is 900 a month.

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