How Much Higher Will Interest Rates Go?
Powell is the frontman for the bankers who decide what the money printer will print money for. Today he got up on stage and spoke to the American people.
After, CNN and others ran the headline “Smaller rate hikes are coming.” It focuses on how Powell said he is slowing the interest rate increases. But this isn't what he said today at all. He said, "The speed of rate increases does not matter. What matters is how much higher we need to raise rates and for how long. This may be a very long time. History cautions against loosening, and we will stay consistent. We will reach 2% inflation and keep raising interest rates until we do".
He also said, “the effects of rising interest rates lag, meaning we have yet to see the full impact of the rate increases, even at 4%”.
Powell said they are getting their forecasts from private forecasters. These "private forecasters" show a decline in inflation over the next year. But immediately after mentioning this, he notes they were wrong every time so far, so he thinks they might be wrong again. And why are these "private forecasters" not available to the public? That question wasn’t asked.
Powell also said unemployment needs to get much higher than 3.7%.
So why does mainstream news change the information so much? It's because they don't want the public to panic. If they slowly lose their wealth, they will remember it as a less traumatic event than losing it all in one swing.