Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a Senate Banking Committee hearing in Washington, D.C., U.S., on Wednesday, Feb. 12, 2020.Jerome Powell's Jackson Hole speech
The Phillips Curve, that bears the name of the economist William Phillips, states that there is an inverse relationship between low unemployment and high inflation. Phillips studied the British economy from 1861 to 1957 and found that inverse correlation held true during that period. Indeed, here in the U.S., especially in the 1970s, as the influence of labor unions peaked, contractual raises and inflation adjustments were automatically built into wage levels. The U.S. abandoned the gold standard, the value of the dollar fell, and shortages of key commodities, including two massive "oil shocks" fanned the flames of inflation.
Both interest rates and inflation have continued to fall since their respective peaks in 1981 and have borne no direct relation to the levels of employment. Should it fall, as the Fed remains accommodative for the next many years, will a weaker dollar, enormous public sector debt prove inflationary or, will that indebtedness lead to further deflationary pressure if the post-Covid economy fails to grow fast enough to support heavy debt levels?Inflation and deflation tend to be part of great economic waves that often last decades.
Ron Insana is one of the stupidest human beings in all of the history of the entire world. It actually not even a debate any longer.
This article fails to point out one big thing.. once the Fed gets their inflation, they have no way of stopping it !!
he has screwed over the ppl one fixed incomes and have savings account!!!
Ron Onsana is a complete idiot.
The largest danger is the FED causing inflation with rate increases in a period of less than robust demand. Every time they go off in a search for normalization they end up sawing the bottom off the ladder. tt:rinsana larry_kudlow MadMoneyOnCNBC
Powell gave a green light to gold $XAU on the longer timeframe and allowed a bigger door for entry on this price pullback. Probably allowed charts to consolidate and reboot. $3100 top will get blow by now.
Good to own preferred stocks