Federal Reserve Chair Jay Powell wants a swift decline in the rate of consumer price inflation. He isn’t getting what he wants.
According to the Bureau of Labor Statistics, consumer price inflation, as measured by the consumer price index (CPI), increased at an “official” annualized rate of 8.3 percent in August.
This exceeded Wall Street’s consensus expectations of 8.1 percent. What’s more, it crushed investor hopes a ‘Powell pivot’ would come sooner rather than later. On Tuesday, the Dow Jones Industrial Average (DJIA) crashed 1,276 points on the news.
Powell, a central planner, wants consumer price inflation to be about 2 percent. Instead, he’s got something that’s over 400 percent higher. What’s going on?
If you want to understand what’s up with raging consumer price inflation and Fed monetary policy, you must understand this. Right now, in the United States as in most of the world, we have a