I hear you and appreciate your point of view, but why all the the talk of trying to manage inflation expectations? Seems like there has to be some sort of psychological component to it. I dunno just a thought
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In the short term, that is definitely the case. But on the whole, I think what Powell said is utter nonsense, comparable to church people who believed that the earth was at the center of the known universe.
Great analogy!! 😂😂 so true!
Indeed it does have a psychological aspect. Notice when Jpowel gets asked questions like why do we need the target of 2% inflation he has trouble giving an answer that sounds grounded in logic. His responses always feel flimsy.
That’s what I picked up on. He was speaking gibberish trying to sound smart and sophisticated. It didn’t work.