US Fed claim’s that Wouldn’t Allow Repeat of 1970s-Level Inflation - But - The Fed’s inflation miscalculations risk hurting the poor
The 10-year benchmark Treasury yield rose 10 basis points on Wednesday Nov 10th 2021 in response to the numbers, which showed a broad-based and faster-than-expected rise in prices and undermined a subsequent auction of 30-year debt. The dollar index, meanwhile, rose to its highest since June 2020, as markets anticipated a first rise in U.S. interest rates well ahead of the Federal Reserve’s current guidance.
The bond market was closed this week - Thursday Nov 11th 2021 for the Veterans Day holiday,
Federal Reserve Bank of San Francisco President Mary Daly said she is monitoring “eye-popping” inflation but it is too soon to judge if the central bank should accelerate its pace of policy tightening. “Right now, it would be premature to start changing our calculations about raising rates,” Daly, one of the central bank’s most dovish officials, said Wednesday during an interview on Bloomberg Television with Michael McKee. “Right now, uncertainty requires us to wait and watch with vigilance.
However, Treasury Secretary Janet Yellen repeated her view that elevated U.S. inflation won’t persist beyond next year and said the Federal Reserve will act if needed to prevent a rerun of 1970s-style price rises. “I’d expect price increases to level off, and we’ll go back to inflation that’s closer to the 2% that we consider normal” as the pandemic fades, Yellen said in an interview that aired Tuesday on National Public Radio’s “Marketplace” show.
Yields on two-year Treasury notes, a figure that represent the value in a calculation for the outlook for the overnight interest rate set by the Fed, jumped 6 basis points, the most in three weeks and among the largest daily increases in the last year and a half, to 0.485% on Wednesday Nov 10th 2021 after the release of data showing consumer prices rose by 6.2% in October versus the year before.
Still, one Fed policymaker on Wednesday Nov 10th 2021 said the central bank should still remain patient.
"We need to wait to see how these percolates through the economy," before changing monetary policy in response to it, San Francisco Fed president Mary Daly said on Bloomberg TV.
U.S. Treasury Secretary Janet Yellen said on Tuesday Nov 09th 2021 she still believes Congress should pass a debt limit deal on a bipartisan basis and that both Democrats and Republicans understand the consequences of a default on U.S. debt if they do not.
Asked during an interview with the Marketplace program on National Public Radio if she would support Democrats passing a debt limit without Republican votes, Yellen said: "I want it to be done. I believe that both Republicans and Democrats should do it. It's a kind of housekeeping chore." While in Germany's federal government finances are in a critical state and the next government must consolidate them, the federal audit office said on Wednesday November the 3rd 2021 in a warning shot to parties working to form a ruling coalition who are considering taking on more debt.
Larry Kudlow the National Economic Council during the Trump Administration from 2018 to 2021 summarize this situation that way
Now, the White House with it’s usually penetrating analysis, blames price gouging from oil companies and presumably gas stations. This is exceedingly nonsensical. If this were remotely true, you’d have to have price gouging in: energy, food, shelter, transportation, medical care, sporting events, postage stamps, recreation, used cars, new cars, car and truck rentals, and hotels.
The
Solid Ground is correct … what has just happened is that the control of the
supply of money has permanently left the hands of central
bankers
The Financials Bubble definition then has change
The term "bubble," in a financial context, generally refers to a situation where the price for something—an individual stock, a financial asset, or even an entire sector, market, or asset class—exceeds its fundamental value by a large margin.
A basic characteristic of bubbles is the suspension of disbelief by most participants when the speculative price surge is occurring:
And once again, those who all year long have been characterizing this inflation episode as “transitory” appear hesitant to revisit their convictions despite consistently contradictory data.
With this video clip above dated of November 11th 2021 the US Market hereby is distorted by the lamestream media as propaganda machine has strong believes that the hike will come soon;
Well, please take a proper look to the Reverse REPO (click on the right image) data to realize that currently The Treasure Secretary Janet Yellen the FED charwoman is capable to maintain as manipulate the very same way as it was made and done under Barrack Obama administration in smaller scale by withdrawn from the US Market overnight roughly expressing about $1.5 trillion USD which allow for the Biden Administration to keep inflation in check as one popular method of controlling inflation through a contractionary monetary policy. It is a type of macroeconomic tool designed to combat rising inflation or other economic distortions created by central banks or government interventions. It would not turn Fed’s increasingly discredited referring to “transitory” inflation. It is fake as the real inflation has no change to stand since the contractionary monetary policy does not allow for the public to realize what is the real value of these money. In other words what Biden Administration does is about or precisely midnight every day … as just before intraday clearance on banking operation sign to effect Reverse REPO Contracts and repurchase it few minutes thereafter midnight ... intraday clearance and bring back all inflationary money supply without any consequences. But … since the Bank for International Settlements (BIS) is an international financial institution that aims to promote global monetary and financial stability through the coordination of global central banks and their monetary policy efforts, all internationally exchange currencies’ will raise alarm on that ground. What further means that allover the world Governments do exactly the same and we have quiet cooperation instead. … President Joe Biden and Chinese President Xi Jinping will hold a virtual meeting on Monday next week as of Nov. 15,2021 to keep all international community quiet;
By Peter von Roggenhausen
