The Federal Reserve, led by Jerome Powell, has recently announced a pivot in their monetary policy. This pivot will allow the Fed to revert to an easy money policy, which means that they will be able to print more money and stimulate the economy.
This change in policy is a result of a recent rule change that gives the Fed the political cover they need to abandon their previous stance of monetary tightening. The pivot is being eagerly anticipated by many, as it is expected to have a significant impact on markets, purchasing power, retirement accounts, and other investments.
The Fed’s previous commitment to monetary tightening was aimed at bringing inflation (CPI) back down. However, the latest CPI reading has dropped from 9.1 to 6.5, raising the question of whether this goal has already been achieved. Additionally, some analysts argue that the Fed has the ability to manipulate and change the rules in order to achieve their goals.
Jerome Powell, the current chairman of the Federal Reserve, has previously stated that the Fed is not thinking about raising rates in 2020, and then lowered rates. He also said that the Fed would not raise rates for four years, but then began raising rates two years later. Recently, he stated that the Fed is not thinking about lowering rates and plans to keep rates high for a long time. However, these statements and actions may change as the Fed’s monetary policy shifts.
The Fed’s pivot towards easy money policy is expected to have a positive impact on the markets and economy, but it also has the potential to negatively impact employment and wages. Despite this, the Fed believes that this pivot will be necessary in order to bring inflation back down.
Mark Moss, the creator of the video discussed in the original text, believes that the Fed’s pivot towards easy money policy is a significant development that should not be overlooked. He suggests that individuals take action to prepare for the potential changes in the economy and markets, and that they pay attention to the rule change that allowed the Fed to shift their monetary policy.
Moss also mentions some of his favorite economists and analysts, such as Harry Dent, Peter Schiff, and David Hunter, who have previously been correct in their predictions but have underestimated the tricks and manipulation that the Fed can use to change the rules. He encourages viewers to consider the insights and analysis of these experts, while also being aware of the Fed’s potential to manipulate the rules.
In conclusion, the Federal Reserve’s pivot towards easy money policy has the potential to have a major impact on the economy and markets. While it may bring inflation back down, it also has the potential to negatively impact employment and wages. It is important for individuals to pay attention to this development and consider the potential consequences. Additionally, it is important to be aware of the Fed’s ability to change the rules and manipulate the economy. It is recommended to pay attention to the insights and analysis of well-respected economists and analysts while also keeping an eye on the Fed’s actions.
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