Biden ‘Not Surprised’ Fed Kneecapped ‘Historic’ Economic Boom

Joe Biden subtly blamed Jerome Powell for the recession both men claim the US isn't in. "It's no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation," Biden said Thursday, shortly after the advance read on Q2 GDP showed a second straight quarterly contraction. The media was awash in "recession" headlines, and although I didn't check, I'm sure the "R" word was trending on social media. Read more: Don’t Call It A Recession Biden's strategy is a good
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3 thoughts on “Biden ‘Not Surprised’ Fed Kneecapped ‘Historic’ Economic Boom

  1. Your article reminded me of an old joke:

    As the young man was preparing for graduation, his mother asked him what he was planning on doing with his life. The son looked at her sheepishly and replied, “I’ve decided to become a piano player in a wh–e house.”
    His mother let out a huge sigh, “That’s a relief, I was afraid you’d become a politician.”

    I’ll be here all week

  2. H-Man, when the pandemic hit and the world shut down, the US pushed a ton of money into the economy in the form of stimulus but because of supply chain disruptions, the money could not buy what it wanted ( Costco and toilet paper). So with excessive demand and little supply, prices go up and they go up in a hurry (homes) but it is not isolated to any sector — everything goes up in price due to excessive demand. So to find or return to equilibrium, you either provide a ton of supply or weaken demand or do both. Supply is still on shaky ground notwithstanding the build in retail inventories like Walmart (which is a couple of cargo containers from having nothing from China) or restaurants that have empty seats due to a lack of servers. (the labor input is another discussion). But supply is far better than it was two years ago. The problem is tamping down on demand and the current method of reducing demand is to raise interest rates to the point you don’t buy stuff. So when you step on the throat of demand, you are also breaking the back of supply. So tell me how is this going to end “softly” when you have a mangled body and the boot remains on the throat. I suggest it may take years before the throat and back are healed and equilibrium is returned.

    1. Unfortunately, housing might take years to return to an equilibrium- however, automobiles might not take as long. The chip shortage should ease enough by 4Q to result in an increase in the supply of new automobiles, which will then bring down prices of both new and used autos.
      Anyone who absolutely needs a car right now (that can’t defer purchase until year end) is going to have to pay up significantly. I have been helping a friend, who desperately needs to replace their current car, look for a used car and the prices are still completely ridiculous.

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