Fed Chairman Jerome Powell Will Sacrifice Jobs to Contain Inflation

YEREVAN (CoinChapter.com) — Jerome Powell, the Chair of the Federal Reserve of the United States, is out of control. He is ready to burn everything to the ground in his obsession to lower inflation under the self-set magic goal of 2%.

What stands in his way? Well, jobs and economic growth. The Fed gets more aggressive with its interest rate hikes as the US economy progresses. 

Unable to digest the strong start to 2023, Powell is determined to bring the economy to its heels. January data showed that half a million new jobs and healthy consumer spending figures were created. Despite the Fed’s efforts, the US economy is not slowing down.

That, of course, is not something that Powell and Co. enjoy. 

Strong intervention is necessary if he is to curb inflation under the desired target. But that comes as bad news for the average US citizen. A further tightening of the economy may undo the necessary relief markets have received in recent weeks.

“If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,”

 Powell said ahead of his appearance at a US Senate hearing earlier this week. 

Powell comes after your jobs

Jerome Powell does not enjoy seeing US unemployment numbers drop. More people are working means a healthier economy. That, as mentioned above, does not feature within his grand plan of fighting inflation. 

Hence, he is determined to get even more aggressive in the coming months until he gets what he wants. The Fed has raised its interest rate by 4.5 percentage points over the last year. While this is one of the highest and longest continuous hikes, its end is nowhere in sight.

But economists now believe that Powell has put the economy at risk. The aggressive policy he has started will culminate in an economic recession.  

“There is no exit from this until he [Fed Chair Jerome Powell] does create a recession, ’til unemployment goes up, and that is when the Fed rates will stop being hiked,”

 CNBC quoted TS Lombard Chief U.S. Economist Steven Blitz on the matter. 

Recommended: Dollar Index Rallies after Powell Speech – Stocks Plummet – Recession Alert ON

Biden Administration complicit in Fed’s plans

While Powell is hell-bent on taking away jobs from ordinary Americans, the Biden Administration has become a mute spectator. Yet, some would argue that President Biden is complicit in the Fed’s disastrous plans. 

Quoting an unnamed White House official, Reuters reported that the President’s office is unlikely to come in Powell’s way. 

“The White House isn’t going to interfere with the Fed’s management. But we’re dealing with one month of data and people need to sit back and take a breath,” 

the officer allegedly said. 

This comes as little surprise. Joe Biden relies on the Federal Reserve to chalk out an economic recovery plan ahead of the 2024 Presidential elections. If Biden wants to get elected, the US Economy must recover. However, with a forced recession the only way for recovery, Powell’s actions could backfire. 

US citizens must prepare for a recession and a possibly prolonged unemployment rate jump. Powell sees no other path to recovery without forcing the economy into recession. So if you are a US Citizen, you will do your best to brace up.