The Federal Reserve recently held its April Federal Open Market Committee (FOMC) policy meeting. The U.S. central bank left its benchmark interest rate at 0.25% and kept the monthly bond purchases of $120 billion intact. In an FOMC statement, the Eccles Building noted that it would continue to “using its full range of tools to support the U.S. economy in this challenging time” to achieve its mandate of full employment and price stability.
The Fed acknowledged that the COVID-19 pandemic is wreaking havoc on humanity and the economy worldwide, adding that various sectors remain weak but have shown improvement.
Unless the policy minutes reveal something completely different, very little was unveiled during the monthly monetary powwow, except that officials see no inflation, speak no inflation, and hear no inflation. The elephant in the room was, indeed, inflation. But like Harry Houdini’s Vanishing Elephant trick, the audience missed the central bank’s comments as Chair Jerome Powell quietly shrugged it off as “transitory.”
During the post-meeting press conference, Powell treated the American people like children, assuring everyone that the Fed would let the public know when it would be time to discuss tapering its unprecedented and extraordinary quantitative easing efforts. Powell also noted that he is not even “thinking about thinking about” raising interest rates at this point.
“No, it is not time yet,” he told reporters at the virtual news conference. “We’ve said we would let the public know when it was time to have that conversation, and we said we’d do that well in advance of any actual decision to taper our asset purchases.”
When would be the time? According to Nomura’s Charlie McElligott, somebody is making a bet that the Fed ushers would begin winding down the party at the annual Jackson Hole festivities at the end of August, as “there has been a very large trade building the past few days which is anticipating a Fed hawkish shift in outlook.”
The Curious Case of Biden Blunders
During his address to the joint session of Congress on Apr. 28, President Joe Biden delivered a few dozen misleading statements, false facts, and progressive prattle. Of course, the mainstream media will keep quiet about it and say, “but, but, but, Trump” until they are orange in the face.
President Biden cited a debunked-but-repeated claim from the Institute for Policy Studies (IPS), a left-wing think tank. According to the untrue assertion that has been parroted by the Fourth Estate nationwide, billionaire wealth has soared since the beginning of the coronavirus pandemic. On the surface, this makes sense due to stocks and benchmark indexes trading at all-time highs one year after the coronavirus-induced financial crisis. But it is not all that it seems.
The problem with this finding is that it only starts from when the market bottomed at around Mar. 23. If a genuine assessment of the equities arena occurred, the analysis would begin on Feb. 20, when blood from the New York Stock Exchange began pouring into the streets. Put simply, the researchers narrowed the timing to present a bogus narrative.
As Brian Riedl wrote at the National Review:
“It is the equivalent of saying the Cleveland Browns went 6–0 last season if you don’t count the ten losses. The pandemic pushed up stock values if you don’t count the collapsing part. The rich got richer if you don’t count the downturns. That is not how wealth-building works.”
Moreover, it is also disingenuous to suggest that the billionaires only became wealthier because of the pandemic. Amazon, Tesla, Apple, and a broad array of other corporate juggernauts were already rallying before the government forced the nation under house arrest. Plus, if the president is so concerned about billionaire wealth, how come Biden refused to slam the Federal Reserve System?
Let Them Eat Dollar Bills
How is your supermarket bill lately? You may have noticed that close to everything has gone up in price: meat, produce, dog food, and those rich, waist-expanding desserts. The economic recovery looks like it is going to be inflationary, with the cost of living skyrocketing across the board at the same time. But food inflation is perhaps the most frightening of them all.
The latest Bureau of Labor Statistics (BLS) data, compiled by The Wall Street Journal, shows just how much food prices within the consumer price index (CPI) have surged over the last 12 months. Here is a look at how much your grocery bill has jumped since mask fetishism emerged from basements:
- Meats, poultry, fish, and eggs: +5.6%
- Fruits and vegetables: +3.8%
- Non-alcoholic beverages: +3.2%
- Cereal and bakery products: +2.4%
- Dairy and related products: +1.8%
If you happen to eat outside the home, fast-food restaurant prices have spiked 6.5% since March 2020.
There is no inflation if you do not eat, live under a roof, wear clothing, or receive medical care. Let them eat Federal Reserve notes.
Read more from Andrew Moran.