La FED annonce la récession en disant qu'elle ne peut pas garantir un "atterrissage en douceur" alors que la Fed cherche à contrôler l'inflation. - Insolentiae

La FED annonce la récession en disant qu’elle ne peut pas garantir un “atterrissage en douceur” alors que la Fed cherche à contrôler l’inflation. – Insolentiae

What the president of the American central bank Jerome Powell said is very important whereas it passed completely unnoticed!

This is indeed an incredible statement from the world’s greatest central banker.

What did he say ?

“That he can’t guarantee a ‘soft landing’ as the Fed seeks to control inflation. »

Mr Powell said he could not promise a ‘soft landing’ for the economy as the Fed hikes interest rates to rein in rising prices, which are at their fastest pace in more than 40 years.

“So a soft landing is getting back to 2% inflation while keeping the labor market strong. And it’s quite difficult to achieve that right now, for a number of reasons,” the central bank chief said in an interview with Marketplace.

He noted that with a tight labor market pushing wages up, avoiding a recession that often follows aggressive policy tightening will be a challenge.

“So it will be a challenge, it will not be easy. No one here thinks it will be easy,” he said. “Nevertheless, we believe that there are ways (…) to achieve this”.

For his part, Powell said he understands the additional pain higher rates can cause, but said the Fed needs to act aggressively.

“Our goal, of course, is to bring inflation down to 2% without the economy going into recession.” “That’s what we’re trying to achieve. I think the one thing we really can’t do is not restore price stability, though. Nothing in the economy works, the economy doesn’t work for anyone without price stability. »

He just announced the recession!

This is what Powell has just done.

He has just announced a strong recession.

A recession is a major correction in stock prices.

As the rates were at 0 and they are rising, it is also an announcement of a bond crash.

In short, Powell has just announced to you that if there is no soft landing there will be a violent crash.

Prepare yourselves.

Charles SANNAT

“This is a ‘presslib’ article, that is to say free of reproduction in whole or in part provided that this paragraph is reproduced following it. Insolentiae.com is the site on which Charles Sannat expresses himself daily and delivers an impertinent and uncompromising analysis of economic news. Thank you for visiting my site. You can subscribe to the daily newsletter free of charge at www.insolentiae.com. »

Source CNBC.com here

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