by Paul Craig Roberts, Paul Craig Roberts:
The Federal Reserve is not conducting an anti-inflationary policy. It is conducting an anti-people policy.
The rising prices are not due to excessive consumer demand that needs to be curtailed by choking off credit. The rise in prices are the direct consequence of the idiot Biden regimes’ unnecessary Covid lockdowns and the idiot Biden regime’s Russian sanctions which have disrupted the globalism on which the Washington fools have based our economy. Putting people out of work cannot prevent higher prices due to supply constraints. The Federal Reserve is causing higher prices by further reducing supply.
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If the Federal Reserve does not know this, the Federal Reserve is too incompetent to justify its existence and should be immediately abolished.
If the Federal Reserve does know this, then what is its real purpose?
The real purpose is to cause trauma for the population so that the Biden regime can step in and offer all sorts of support and rescue programs and get Democrats reelected so that they can continue with their plan to establish a one-party state in which MAGA Americans are “domestic terrorists” and excluded from political representation.
Powell, like the rest of them is just a member of the establishment that operates full time against the people.
The Fed just confirmed that its self-induced ‘growth recession’ could put more than a million Americans out of work
New projections from the Federal Reserve show unemployment climbing to 4.4% in 2023.
If proven correct, that would mean around 1.5 million more Americans would go unemployed by the end of next year.
The inflation fight will be painful, but letting prices surge would bring “far greater pain,” Fed Chair Powell said.
The Federal Reserve has already warned the fight against inflation will be a painful one. New projections reveal that, for more than a million working Americans, that pain could be severe.
Federal Open Market Committee members — the policymakers deciding on interest rate hikes — published new economic estimates on Wednesday, and their projected picture of the next few years isn’t pretty. Officials now see the unemployment rate climbing to 3.8% by the end of the year, up slightly from the latest reading of 3.7%. The measure is then expected to rise to 4.4% next year and stay there through 2024. That’s up from the prior estimates of 3.9% and 4.1% rates in 2023 and 2024, respectively.
Should officials’ projections hold true, the jump in unemployment from July’s low of 3.5% to next year’s projection of 4.4% equates to about 1.5 million more Americans going unemployed, based on the current labor force level of around 165 million people working or actively looking for work.
The actual number could be higher still. The unemployment rate only counts out-of-work Americans who are still measured as in the labor force and actively looking for a job. If the labor force grows throughout next year, then the 4.4% unemployment rate will equate to even more jobless Americans.
A higher unemployment rate was to be expected from the central bank’s war on inflation. Rising interest rates slow economic growth and cool demand. That leads companies to curb their hiring plans and, in some cases, lay workers off to cut costs. Growth will slow, unemployment will climb, and the US will likely find itself in a self-imposed growth recession.
As Fed Chair Jerome Powell put it on Wednesday, the labor market remains “extremely tight,” and there “will likely be some softening” as the central bank targets demand.