(Conservative Treehouse) – While admitting that consumer spending had dropped and production of goods and services had “slowed significantly,” Federal Reserve chairman Jerome Powell announced his intention to continue targeting excessive demand.
Alongside spending and production reductions, Powell announced that consumers have “lower real disposable incomes and tighter financial conditions” while stating that “activity in the housing sector had weakened,” housing purchases have fallen, all while accepting that “business fixed investment seems to have declined in the second quarter.”
If we accept that monetary policy can only impact the demand side of the economy (regulatory policy impacting the supply side), and if we accept all of the currently existing realities of a declining demand side, as outlined by Powell, then you might wonder what excessive demand it is that he’s targeting.
The answer to that question is the secret sauce: they want less energy demand.
The Federal Reserve, just like all the central banks around the collective western alliance, is trying to reduce the economy in order to reduce energy use. This is the monetary policy side supporting the Build Back Better, climate change, regulatory policy side.
They cannot admit openly what they are doing, but the bankers are trying to help the globalist politicians by shrinking their economy. Raising interest rates into pre-existing economic contraction is against their legislative mandate, because it only leads to unemployment and a smaller economy.
Powell is using the pretence of demand-side inflation as a justification to raise interest rates. It’s not demand driving inflation, it’s the energy policy.
Powell is managing the monetary side of the transition to a Green New Deal economy while managing the economy into a recession to support the “energy transition”.
This is all being done on purpose.
The Wall Street Journal has more:
“Mr. Powell said in his news conference following the Fed’s decision to raise rates by 75 basis points that future rate decisions will be made on a meeting-by-meeting basis now that the federal funds rate target range is between 2.25% and 2.5%, which he deemed roughly neutral in terms of its impact on economic activity.
Mr. Powell said the 75-basis-point moves in June and July were unusually large and something similar at the September FOMC ‘could be appropriate.’ But he said that the Fed can no longer provide ‘clear guidance’ and will let the data determine what happens next. He said he still believes monetary policy will need to move to a restrictive stance and will likely be between 3% and 3.5% by year end.”
Reprinted with permission from Conservative Treehouse.