When one dissects the short comment from Federal Reserve Chairman Jerome Powell, it is clear his interest rate hikes force the working class to pay for the gouging and ineptitude of the corporatocracy.
Jerome Powell sadly burdens the working class.
The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest.
The Federal Reserve
- conducts the nation’s monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;
- promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;
- promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole;
- fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; and
- promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.
The words sound great, but unfortunately, there is little support for the consumer, the working class. The Feds recently increased the interest rate once again. Powell’s following statement illustrates perfectly that he does not work for the working class.
“What we’re doing now is raising interest rates for people,” said Jerome Powell. “And so people are paying higher rates on mortgages and that kind of thing. And there will be some softening in labor market conditions. And I wish there were a completely painless way to restore price stability. There isn’t. And this is the best we can do.”
And then Jerome Powell points out who he really works for — spoiler alert — It is not the working class.
“I do think, though, that the markets are pretty confident,” Powell continued. “It seems to me that we will get inflation under control, and I believe we will. We’re certainly highly committed to do that.”
Here is the bottom line, raising interest rates is placing the burden of solving inflation on the backs of the working class. As I have mentioned ad nauseam,
As I have written about many times, the sole cause of inflation is corporate greed, negligence, ineptitude, and false scarcity. The war in Ukraine and COVID are convenient excuses we have been trained to accept as fact.
There was never an oil shortage; it was always a false scarcity. That is why even though we virtually kept using the same amount, there were never gasoline stations without gasoline. They knew Americans had extra savings from not spending during the pandemic and from a stimulus. They did not allow Americans to keep that money. They used inflation to steal it, and it shows up in their profit margins. I explained that in an interview on the Muslim TV Network after one of their producers read one of my bogs incredulously.
The corporate class blames the pandemic for the supply-chain component of inflation. The truth is that they chose profit over economic security with a failed model known as just-in-time-inventory, which leaves no slack for hurricanes, political upheavals, pandemics, and the like. Please read this blog post I did with Professor/Economist Dr. Richard Wolf regarding the who and blame for inflation.
Stop raising the interest rates. Let the government, we the people, force corporations to accept their responsibility and absorb the costs.
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