The Federal Reserve Chairman, Jerome Powell, believes that the US Economy is moving towards a new normal, he said at FridayāsĀ āFedĀ Listensā event. āUnless Rents Rise,Ā housing Is Set UpĀ for an epic crash, none unless rents rise.ā
Powell kept his remarks brief, but explained that in regards to inflation and the current economy, āwe continue to deal with an unusual set of disruptions.ā His opinion isnāt new, as Powell has previously said that the US Economy needs to brace for āsome pain,ā earlier this month.
The Fed recently increased interest rates byĀ 75 BPS. Powell did not comment on the interest rate increase at the event. Currently, the economy is still battling inflation, seeing a slight drop toĀ 8.3% after a record-high summer.
The battle against inflation has been a conflicting one for the Federal Reserve. As interest rates hike up, critics are worried about the long-term consequences of raising these rates. On the other hand, world events such as Russiaās invasion of Ukraine has hiked prices for valuable resources worldwide. Hence, the rise in rates in the U.S. (DINARIAN NOTE: IS THIS WHY? OR IS IT ALL THE MONEY PRINTING AND SPENDING)
However, the biggest victims of the current economy becoming the
new normalā are the lower-class families whoās wages arenāt sizing up with inflation, according to FedĀ Vice Chair Lael Brainard. Brainard also spoke on the Fed Panel Friday in defense of the families and those responding negatively to the price increases. As the US consumer index rises as well, the Fed is sacrificing the US economy to halt it.
In addition, seven of theĀ Boardās governors were present for the panel, withĀ Philip JeffersonĀ andĀ Lisa CookĀ making public comments about their roles asĀ FedĀ officials for the first time.
