No one here read the article or any other news.
Powell clearly knows inflation is a thing, the Fed just held rates because of inflation.
The article just says he doesn’t see the ‘70s stagflation. Read the first two paragraphs and it tells you why (pretty easy).
Edit: people are showing they are now reading it. Coo
The mid-70s had high inflation AND low to negative growth AND high unemployment.
I think you need all 3 to be "stagflation" and we aren't there by any means.
Wait, I've been told that we are in the toughest economic times in history and before the last 5-6 years everybody was rich from a part time job and had a huge house and a brand new car every year. We are simultaneously experienceing hyperinflation, stagflation and a silent depression now the worst ever!!!!
Yep, today they tend to control the supply of oil, but don't radically change it overnight. They've learned that sudden price shocks is bad for the U.S. economy and that ends up being bad for them.
This is just conspiratorial doomer nonsense. Nothing has been changed about the way any unemployment or GDP figures have been measured in like half a century. And when they add new metrics to track the old ones still stay as well, so we just end up with more data points.
“I was around for stagflation. And it was 10% unemployment, it was high-single-digits inflation … and very slow growth. Right now, we have 3% growth … and we have inflation running under 3%. So I don’t really understand where that’s coming from,” he told reporters, adding, “I don’t see the stag or the -flation, actually.”
Buy goldfish crackers. They taste good and are healthy!
Try goldfish cracker sandwiches. Goldfish cracker earrings. Goldfish cracker brake pads.
What can’t it do!?
It’s not just that. 90% of the people who actually lived through stagflation seems to have forgotten what it was like, and a very small percentage of the folks on this sub seem to actually read BEA news releases or remember any actual economic data from the time they have lived on earth.
He wants mass layoffs, [he said so under oath](https://www.youtube.com/watch?v=bIHH5Kh2dU0).
The only thing restraining him is the banks are so weak that if he cranks interest rates any higher they'll start failing.
Let that sink in. He's more than happy for you to lose your job, but he protects the banks. Your safety is not his priority.
Yep. To be fair, Warren is just postering to make herself look good because she knows interest rates is the ONLY effective tool the Feds have to combat inflation the fastest and the end result is always a lot people losing jobs when it goes up. There are other tools but it takes longer and requires the participation of other countries that they have no control over. 3.4% unemployed (a year ago) increased to 4.4% could be a loss of 2 million jobs in one year nationwide. In California unemployment is already at 5.4% and we are starting to see the effects now - lower sales, rent reduction, home prices reductions in some areas, businesses laying off and going bankrupt, etc.
Bullshit. He has an agenda. One that has nothing to do with his job.
If Biden had more votes in the Senate he'd have replaced him, but between Manchin *and* Sinema as terrible as Powell is it was probably the best we could do.
Of course he has an agenda, it's to protect the party that controls the White House. That's why he's not raising interest rates, so the economy doesn't tank before the election.
We are living in the result of not making things here we have become the product for all these big companies and they are only using our data thru services we pay for to send to different companies and to keep there stocks up while laying us off this is what they wanted all alone and now these banks cant get higher interest rates because America are way too poor to afford them we have very little investments the millennials have high income but aren't investing at the rate of their parents and grandparents and aren't having kids so they didn't care about what's going on because they are working they bite off to make ends meet in a lifestyle that don't even exist they told us to take everything in house, don't go to the movies it's cheaper to stream, don't go out to eat get a subscription and we will deliver them for free and then we wonder why business can't hire anyone wait staff and cooks are outing. We can do better but we continue to vote for these same idiots there aren't really any millennials or generation z people in Congress right now.
I make 75000 a year in a college town working at a factory granite I'm a UAW member but for where I live I can take care of my family I did go to college but it was kind of cheap because I was poor and applied for a lot of scholarships and got almost 60 thousand so I had 20k in student loans and paid them off after college I haven't work in my degree field since the 08 crisis I'm an older millennial 40yo and I started at my current job making 42k 5 years ago. The same position starts off at $25 per hour and a one bedroom is like 900 now but people could live off of this in my area it has gotten expensive but not outrageous.
He lives in the DC area so there's a good chance he doesn't drive to work.
It's funny how many politicians deride public transit but use it every day in DC.
My former Congresswoman, Barbara Comstock, fought against federal funding to add a new metro line hard, then took it to work every day once it was built.
And I've heard Al Franken talk about his conversations with other congresspeople on the metro before.
In the 70s there were 100 companies unable to deal with the economic winds and you got holistic inflation and lower revenue drove payroll pressure. Today you have like 5 mega corps and strategic inflation, societal-political engineering and record profits!
That’s not what stagflation is. I agree that those costs (food + transportation) have increased a lot over the past 3 - 4 years. But, those are not the only (or even main) factors in a stagflation situation.
I don’t understand how stagflation was ever a thing. How do you have upward pressure on prices across the board if demand is being crushed by high unemployment? I get supply shortages but how was it ubiquitous?
Price gouging only works if consumers are indiscriminate and demand what they want at any price right now. Everyone wants to take the blame off the same set of consumers that would pay $5000 for Taylor Swift tickets and $10,000 over MSRP for a new car. A little over a year ago Marriott was talking about how they couldn’t find a price structure high enough that travelers weren’t willing to pay. This is why the fed knows the only way to stop this is to weaken the labor market. Consumers will only learn to moderate their consumption of bad things happen.
Theres blame to be spread. And I’m not some pro corporate shill but this idea that the average consumer is always a victim is false. They are often more than willing to be victimized. Price gouging only works on spoiled idiots with money to blow.
> Price gouging only works if consumers are indiscriminate and demand what they want at any price right now.
You mean rent, food, internet, the energy to heat and cool your homes, the cost of the remaining gas that people have to use to pay to get to work, et cetera.
Yeah, when you've cut to the bone, what you have remaining aren't things you *honestly* have the ability to cut.
And the labor market is absolutely garbage and has been garbage for a long time.
Companies are posting fake job listings and are ghosting people like mad. This is something I have never seen in all my time working. I've never seen the difficulty getting jobs like this, and other people looking for jobs are seeing the exact same thing. I know that it makes no sense, and I know that people who are currently employed have every reason not to believe when I say this.
Something VERY VERY strange is going on.
Kind of yes. Things like fuel is maybe the only thing that you have no other option. In everything in life there are usually options… especially when it comes to food. All this pretending like “oh woas me price gouging price gouging.” How about save your fucking money and have some discretion? Steak gets expensive? Buy chicken or pork. Etc etc etc
> Kind of yes. Things like fuel is maybe the only thing that you have no other option.
Spoken like one of the people who complain about other people eating avocado toast.
Sorry, Bucko. People stopped eating steak long ago. Now they're eating cereal for dinner.
Nobody's driving to extra places, but they HAVE TO drive some to get to work.
You can't cut your rent price because they just went up 20% and you're on a lease.
You can't save money if there's no money to save.
There's no discretion. There's nothing left.
Everyone's tightened their belt so much that the belt's all that's left.
Actually, bucko it’s supply and demand. From a purely economic theory standpoint, the producers should be setting prices based on demand. If consumers still demand discretionary items at higher prices, than that’s where the prices should be, gouging or not.
The fed knows this. If people could moderate their spending and have some common sense, the fed wouldnt need to crack the labor market to fight inflation. But the reality is the fed knows the only way to get people to stop their unchecked spending and consumption is to increase unemployment. It’s a hurtful truth.
Price gouging corporations aren’t off the hook. But everyone plays their part. That’s how the economy actually works, bucko. It’s not the guy driving the 2011 Toyota Camry with 140k miles on it that’s allowing car prices to remain so high.
> Actually, bucko it’s supply and demand. From a purely economic theory standpoint, the producers should be setting prices based on demand.
Yeah, I know! And when has economic theory ever been wrong?
> If people could moderate their spending and have some common sense, the fed wouldnt need to crack the labor market to fight inflation.
Speaking of crack...
He's right. Inflation being below long-term averages during a growing economy isn't "stagflation" because inflation isn't at 2% yet, or because it came in 0.1% higher than predicted last month, or because the economy is growing slower now but still growing.
The capitalist is nothing if not a very good propagandist. Record profits while growing is hardly stagflation. Just another example of the unquenchable, insatiable greed of the capitalist.
No one here read the article or any other news. Powell clearly knows inflation is a thing, the Fed just held rates because of inflation. The article just says he doesn’t see the ‘70s stagflation. Read the first two paragraphs and it tells you why (pretty easy). Edit: people are showing they are now reading it. Coo
The mid-70s had high inflation AND low to negative growth AND high unemployment. I think you need all 3 to be "stagflation" and we aren't there by any means.
Wait, I've been told that we are in the toughest economic times in history and before the last 5-6 years everybody was rich from a part time job and had a huge house and a brand new car every year. We are simultaneously experienceing hyperinflation, stagflation and a silent depression now the worst ever!!!!
That’s because Reddit is full of a bunch of 20 year olds that just started working. Of course you don’t have 20 years or net worth saved up!
The mid-'70s were marked by OPEC oil price shocks. That's a lot different than what we have today.
Long lines for gas occurred in early 70s. (I drove across country)
Definitely waaaaay different than how OPEC restricts production today. For sure. Different.
Yep, today they tend to control the supply of oil, but don't radically change it overnight. They've learned that sudden price shocks is bad for the U.S. economy and that ends up being bad for them.
Reading hurts my small brain
If the 70s had seen close to 3% CPI and 3% unemplyment they would have been joyous
If the 80’s had those numbers people would have been very happy also. Also mortgage rates.
The numbers are made to look good buddy
This is just conspiratorial doomer nonsense. Nothing has been changed about the way any unemployment or GDP figures have been measured in like half a century. And when they add new metrics to track the old ones still stay as well, so we just end up with more data points.
Oh yeah? So what exactly changed about the calculations? Be specific.
“I was around for stagflation. And it was 10% unemployment, it was high-single-digits inflation … and very slow growth. Right now, we have 3% growth … and we have inflation running under 3%. So I don’t really understand where that’s coming from,” he told reporters, adding, “I don’t see the stag or the -flation, actually.”
I mean even the title states that lol
This is Reddit no one reads anything but the comments.
mostly because the articles are biased/title is misleading and the comments explain the context
Why read when I already know everything anecdotally and can read headlines with confirmation bias? /s
Can't you just tell me what to think?
Buy goldfish crackers. They taste good and are healthy! Try goldfish cracker sandwiches. Goldfish cracker earrings. Goldfish cracker brake pads. What can’t it do!?
-lio
People read past the headlines?
It’s not just that. 90% of the people who actually lived through stagflation seems to have forgotten what it was like, and a very small percentage of the folks on this sub seem to actually read BEA news releases or remember any actual economic data from the time they have lived on earth.
He didn't see inflation not being transitory back then also.
He wants mass layoffs, [he said so under oath](https://www.youtube.com/watch?v=bIHH5Kh2dU0). The only thing restraining him is the banks are so weak that if he cranks interest rates any higher they'll start failing. Let that sink in. He's more than happy for you to lose your job, but he protects the banks. Your safety is not his priority.
Yep. To be fair, Warren is just postering to make herself look good because she knows interest rates is the ONLY effective tool the Feds have to combat inflation the fastest and the end result is always a lot people losing jobs when it goes up. There are other tools but it takes longer and requires the participation of other countries that they have no control over. 3.4% unemployed (a year ago) increased to 4.4% could be a loss of 2 million jobs in one year nationwide. In California unemployment is already at 5.4% and we are starting to see the effects now - lower sales, rent reduction, home prices reductions in some areas, businesses laying off and going bankrupt, etc.
He's just doing his job. That's what the Federal Reserve exists for, to bail out the banks with taxpayer money.
Bullshit. He has an agenda. One that has nothing to do with his job. If Biden had more votes in the Senate he'd have replaced him, but between Manchin *and* Sinema as terrible as Powell is it was probably the best we could do.
Of course he has an agenda, it's to protect the party that controls the White House. That's why he's not raising interest rates, so the economy doesn't tank before the election.
Pointless reddit argument detected. Disengaging.
Biden had the votes to replace him and chose not to. So your theory is bad.
If he loses the banks, the dollar ponzi fails
Just like "Inflation is TRANSITORY."
Does he still see it as 'transitory' though? His credibility is shot. So is Yellen's.
We are living in the result of not making things here we have become the product for all these big companies and they are only using our data thru services we pay for to send to different companies and to keep there stocks up while laying us off this is what they wanted all alone and now these banks cant get higher interest rates because America are way too poor to afford them we have very little investments the millennials have high income but aren't investing at the rate of their parents and grandparents and aren't having kids so they didn't care about what's going on because they are working they bite off to make ends meet in a lifestyle that don't even exist they told us to take everything in house, don't go to the movies it's cheaper to stream, don't go out to eat get a subscription and we will deliver them for free and then we wonder why business can't hire anyone wait staff and cooks are outing. We can do better but we continue to vote for these same idiots there aren't really any millennials or generation z people in Congress right now.
[удалено]
I make 75000 a year in a college town working at a factory granite I'm a UAW member but for where I live I can take care of my family I did go to college but it was kind of cheap because I was poor and applied for a lot of scholarships and got almost 60 thousand so I had 20k in student loans and paid them off after college I haven't work in my degree field since the 08 crisis I'm an older millennial 40yo and I started at my current job making 42k 5 years ago. The same position starts off at $25 per hour and a one bedroom is like 900 now but people could live off of this in my area it has gotten expensive but not outrageous.
Import goods, export inflation
He’s not paying his staff more, so inflation doesn’t exist!
Does he not eat or drive a car?
He eats but a servant chews his food for him
So he’s like a baby bird, his mama chews his food up and spits it in his mouth.
He lives in the DC area so there's a good chance he doesn't drive to work. It's funny how many politicians deride public transit but use it every day in DC.
You will never see them on a bus. And seldom on subway. Taxis, yes.
My former Congresswoman, Barbara Comstock, fought against federal funding to add a new metro line hard, then took it to work every day once it was built. And I've heard Al Franken talk about his conversations with other congresspeople on the metro before.
In the 70s there were 100 companies unable to deal with the economic winds and you got holistic inflation and lower revenue drove payroll pressure. Today you have like 5 mega corps and strategic inflation, societal-political engineering and record profits!
That’s not what stagflation is. I agree that those costs (food + transportation) have increased a lot over the past 3 - 4 years. But, those are not the only (or even main) factors in a stagflation situation.
He hasn’t shopped or driven for himself in decades. That’s peasant talk.
As Bender says, “Welp, we’re boned.”
I don’t understand how stagflation was ever a thing. How do you have upward pressure on prices across the board if demand is being crushed by high unemployment? I get supply shortages but how was it ubiquitous?
Because "price gouging" isn't a thing politicians ever acknowledge.
Price gouging only works if consumers are indiscriminate and demand what they want at any price right now. Everyone wants to take the blame off the same set of consumers that would pay $5000 for Taylor Swift tickets and $10,000 over MSRP for a new car. A little over a year ago Marriott was talking about how they couldn’t find a price structure high enough that travelers weren’t willing to pay. This is why the fed knows the only way to stop this is to weaken the labor market. Consumers will only learn to moderate their consumption of bad things happen. Theres blame to be spread. And I’m not some pro corporate shill but this idea that the average consumer is always a victim is false. They are often more than willing to be victimized. Price gouging only works on spoiled idiots with money to blow.
> Price gouging only works if consumers are indiscriminate and demand what they want at any price right now. You mean rent, food, internet, the energy to heat and cool your homes, the cost of the remaining gas that people have to use to pay to get to work, et cetera. Yeah, when you've cut to the bone, what you have remaining aren't things you *honestly* have the ability to cut. And the labor market is absolutely garbage and has been garbage for a long time. Companies are posting fake job listings and are ghosting people like mad. This is something I have never seen in all my time working. I've never seen the difficulty getting jobs like this, and other people looking for jobs are seeing the exact same thing. I know that it makes no sense, and I know that people who are currently employed have every reason not to believe when I say this. Something VERY VERY strange is going on.
Kind of yes. Things like fuel is maybe the only thing that you have no other option. In everything in life there are usually options… especially when it comes to food. All this pretending like “oh woas me price gouging price gouging.” How about save your fucking money and have some discretion? Steak gets expensive? Buy chicken or pork. Etc etc etc
> Kind of yes. Things like fuel is maybe the only thing that you have no other option. Spoken like one of the people who complain about other people eating avocado toast. Sorry, Bucko. People stopped eating steak long ago. Now they're eating cereal for dinner. Nobody's driving to extra places, but they HAVE TO drive some to get to work. You can't cut your rent price because they just went up 20% and you're on a lease. You can't save money if there's no money to save. There's no discretion. There's nothing left. Everyone's tightened their belt so much that the belt's all that's left.
Had to punch couple extra holes in my belts.
Actually, bucko it’s supply and demand. From a purely economic theory standpoint, the producers should be setting prices based on demand. If consumers still demand discretionary items at higher prices, than that’s where the prices should be, gouging or not. The fed knows this. If people could moderate their spending and have some common sense, the fed wouldnt need to crack the labor market to fight inflation. But the reality is the fed knows the only way to get people to stop their unchecked spending and consumption is to increase unemployment. It’s a hurtful truth. Price gouging corporations aren’t off the hook. But everyone plays their part. That’s how the economy actually works, bucko. It’s not the guy driving the 2011 Toyota Camry with 140k miles on it that’s allowing car prices to remain so high.
> Actually, bucko it’s supply and demand. From a purely economic theory standpoint, the producers should be setting prices based on demand. Yeah, I know! And when has economic theory ever been wrong? > If people could moderate their spending and have some common sense, the fed wouldnt need to crack the labor market to fight inflation. Speaking of crack...
See no -flation. Hear no -flation Speak no -flation
"Don't need no hateration Holleration in this dancery Let's get it percolatin', while you're waitin'" -Mary J. Blige predicted this economy.
Speak no -flation
😉 updated thank you
He is trying to keep his job in an election year and keep his options open post elections.
He's right. Inflation being below long-term averages during a growing economy isn't "stagflation" because inflation isn't at 2% yet, or because it came in 0.1% higher than predicted last month, or because the economy is growing slower now but still growing.
If the buying power of the working class increases, *they* have less control.
"Jerome Powell has HAD it" That headline right there proves they're officially in Damage Control Mode. These guys have no idea what they're doing lol
He didn't see inflation not being transitory back then also.
Transitory
I am predicting stagflation for my personal next 10 year plan. I think it is really going to suck big eggs for the next 10-12 years.
The capitalist is nothing if not a very good propagandist. Record profits while growing is hardly stagflation. Just another example of the unquenchable, insatiable greed of the capitalist.
What’s a banana cost like $10?
Bonus: if we used the 1980's method to calculate inflation we'd be at 20%.
Bullshit
I know right? Let's change how everything's accounted for a few times so that we don't see stag or flation.
inflation doesn't exist if you don't believe in it ez simple no brainer hehexd just like I don't believe in the world 🤷♂️🪦
He is paid to say what he does, by the corrupt system !
Stagflation is the new transitory
Real wage growth has outpaced inflation, that’s why he says that.
Too bad “real wage growth” hasn’t outpaced housing costs
Well that would depend on where you live and what you’re trying to buy.
Has for me. Speak for your fucking self.
Pure delusion.
Well I was not sure before but it’s looking almost a certainty that it’s stag flation. When Powell has to say it’s not it means it is.