The Federal Reserve: Always looking backwards, never looking at the Money Supply
The Federal Reserve has been the biggest failure in Government, even worse than Congress or the President(s). They destroy the middle class, the get it wrong consistently...why haven't they resigned.
Children could do a better job. People picked randomly from streets could do a better job. It's almost as if the federal reserve does this on purpose. In April 2020 when all the spending was picking up, in the Federal Reserve was really starting to print money, far beyond any reduction in velocity of money, I correctly said that would be inflation.
Very few people agreed with me. But I was right. Then inflation in 2021 was called “transitory”. That was wrong also. Inflation got worse.
Today, one “Fed Official Says Hotter Data Will Warrant Higher Rates”. Fed Governor Waller, using some form of an old “Phillips Curve” argument, is worried, and says, “Job markets are still ‘unsustainably hot’ and progress on bringing down inflation may have stalled”. But he never looks at the Money Supply, which over the last year is falling. Or the Velocity of money, which is trending up still.
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We need someone at the Fed, to at least acknowledge that both Money, and the Velocity of money is important, not the current Fed officials who won’t even mention it in their “Monetary Reports”.
Time grows short for specific solutions for this giant financial mess. I am the only one who has them. stevelaffey.com