Episode Details

With Jerome Powell existing and Kevin Warsh coming in as the new Fed Chair, he must walk a tight rope across an already strenuous economy. Is the situation hopeless? This seems a fair question given that any action the Fed takes could lead to dire circumstances. Inflation remains elevated, fiscal debt and deficits are out of control, yields are rising in the bond market to compensate for these risks, and the American consumer is running on fumes. Raising rates increases pressure on consumers, banks, and the federal government. Holding rates steady means waiting until something breaks. Decreasing interest rates when inflation remains elevated could risk another spike in inflation further crushing American consumers and the economy. What could be an answer for the Fed? Changing the data, as Warsh has suggested, could be what the Fed uses as rational to lower interest rates. Warsh wants to make changes at the Fed. I am rooting for him, but he faces the Mount Everest of financial difficulties. This episode reviewed an article from Zero Hedge titled “The Fed will invent new inflation numbers out of thin air.”

Link: The Fed Will Invent New Inflation Numbers Out Of Thin Air | ZeroHedge