Fed Chairman Powell "economy too good to be true"

Mar 2012
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#1
Federal Reserve Chairman Jerome Powell sees the U.S. economy generating highly optimistic expectations, with the unusual combination of low unemployment and inflation fueling hopes for an extended expansion.

In a speech Tuesday, the central bank chief said the jobless rate is running at 3.9 percent and inflation is around the Fed's goal of 2 percent. He pointed out that after last week's Federal Open Market Committee meeting, a reporter asked him if the current conditions are "too good to be true," which he called "a reasonable question." "From the standpoint of our dual mandate, this is a remarkably positive outlook," he said, referencing forecasts from Fed officials, the Survey of Professional Forecasters and the Congressional Budget Office.

"Since 1950, the U.S. economy has experienced periods of low, stable inflation and periods of very low unemployment, but never both for such an extended time as is seen in these forecasts," Powell added.

Fed's Powell sees 'remarkably positive outlook' for economy that may be 'too good to be true'
 
Likes: Libertine
Jan 2016
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#2
Except we now have a President who is hectoring and badgering the Federal Reserve, trying to interfere with the proper conduct of monetary policy.

There's always gotta be a turd in the box of chocolates.
 
Mar 2012
51,000
33,650
New Hampshire
#3
Except we now have a President who is hectoring and badgering the Federal Reserve, trying to interfere with the proper conduct of monetary policy.

There's always gotta be a turd in the box of chocolates.
True but this fed chair seems to be ok with that. He echoes often things Trump says. Thats not normal. Usually they are fairly indifferent to one another and separate. This guy seems pretty connected. He was off on CNBC saying how Trump is even better than Reagan in regards to the economy. I was stunned. Now he is saying they see no recession until late 2020 or 2021.
 
Apr 2015
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#5
Federal Reserve Chairman Jerome Powell sees the U.S. economy generating highly optimistic expectations, with the unusual combination of low unemployment and inflation fueling hopes for an extended expansion.

In a speech Tuesday, the central bank chief said the jobless rate is running at 3.9 percent and inflation is around the Fed's goal of 2 percent. He pointed out that after last week's Federal Open Market Committee meeting, a reporter asked him if the current conditions are "too good to be true," which he called "a reasonable question." "From the standpoint of our dual mandate, this is a remarkably positive outlook," he said, referencing forecasts from Fed officials, the Survey of Professional Forecasters and the Congressional Budget Office.

"Since 1950, the U.S. economy has experienced periods of low, stable inflation and periods of very low unemployment, but never both for such an extended time as is seen in these forecasts," Powell added.

Fed's Powell sees 'remarkably positive outlook' for economy that may be 'too good to be true'
That's really refreshing after eight years of sub 2% growth and hearing that it is the new normal, we will never see an economy this strong again.
 
Jan 2016
41,546
37,314
Colorado
#6
True but this fed chair seems to be ok with that. He echoes often things Trump says. Thats not normal. Usually they are fairly indifferent to one another and separate. This guy seems pretty connected. He was off on CNBC saying how Trump is even better than Reagan in regards to the economy. I was stunned. Now he is saying they see no recession until late 2020 or 2021.
Powell has very specifically said that Trump's comments will have NO effect on Federal Reserve policy:

Jerome Powell privately promises Fed’s independence amid Trump’s public attacks

Powell told NPR last month: “We have a long tradition here of conducting policy in a particular way, and that way is independent of all political concerns. We do our work in a strictly nonpolitical way, based on detailed analysis, which we put on the record transparently.”
 
Jan 2016
41,546
37,314
Colorado
#7
That's really refreshing after eight years of sub 2% growth and hearing that it is the new normal, we will never see an economy this strong again.
Eight to ten years of painfully slow growth was EXACTLY what was PREDICTED, in the aftermath of the worst financial/banking/credit crisis since the Great Depression, by the book Eight Centuries of Financial Folly, by the eminent economists Kenneth Rogoff and Carmen Reinhart, which was published in early 2009, and instantly hailed as a landmark work in economics, inasmuch as it carefully analyzed EVERY financial, banking, and sovereign debt crisis to have taken place in the last eight centuries.

It was a prediction that turned out to be absolutely true, quite obviously. It was a prediction that you chose to simply IGNORE.
 
Likes: NeoVsMatrix
Apr 2015
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#8
Eight to ten years of painfully slow growth was EXACTLY what was PREDICTED, in the aftermath of the worst financial/banking/credit crisis since the Great Depression, by the book Eight Centuries of Financial Folly, by the eminent economists Kenneth Rogoff and Carmen Reinhart, which was published in early 2009, and instantly hailed as a landmark work in economics, inasmuch as it carefully analyzed EVERY financial, banking, and sovereign debt crisis to have taken place in the last eight centuries.

It was a prediction that turned out to be absolutely true, quite obviously. It was a prediction that you chose to simply IGNORE.
Actually Obama and his economists were predicting 4.5% growth.
 
Jan 2016
41,546
37,314
Colorado
#10
Actually Obama and his economists were predicting 4.5% growth.
Obama himself never made such a prediction, but some of his economists did, that's true. They were wildly wrong, quite obviously. The point is, there were very serious economists warning back at the very beginning of 2009 that we were looking at possibly a full DECADE of very slow growth. And they were RIGHT.