Jerome Powell, the Head of the FED, spoke again today and showed his innate ability to put markets into a tailspin.
Yahoo News reports:
Federal Reserve Chairman Jay Powell said Friday that Americans should wear masks and follow social distancing guidelines to ensure an economic recovery.
“There’s actually enormous economic gains to be had nationwide from people wearing masks and keeping their distance,” Powell told NPR. Powell added that short of a vaccine, such measures enable people to “go back to work and not get sick.”
Powell also spoke about the August jobs report, describing the addition of 1.371 million payrolls in August as “a good one.” The Bureau of Labor Statistics reported the new numbers on Friday morning, which also showed the unemployment rate falling to 8.4% — below the street’s expectations.
Powell somehow believes that he is now an expert in the China coronavirus. Although there is literally no empirical evidence that supports wearing masks related to the China coronavirus, Powell claims that wearing masks will ensure an economic recovery.
Of course, getting people back to work in Democrat cities and states, stopping riots and burning down businesses in Democrat-led cities, and opening up small businesses in these Democrat cities and states may have some bearing on the economy, but masks, they hold the answer to the economic recovery!
Powell went on to state:
We shouldn’t let those people lose everything they have and have to move out or be evicted and move in with family. That’s also not going to be good for containing the COVID spread,” he said.
What an elitist piece of work. Powell continues to be paid while many Americans suffer under insane, unsupported and authoritarian policies of elite politicians.
Economist Steve Moore, who worked with President Trump, said Powell’s comments today basically were a confirmation that the President’s and Moore’s policies were right, when Powell spoke about things other than masks:
At the beginning of this year and pre-pandemic, the economy was steaming forward at the best pace of this new century.
But we could have even had a higher tide of growth in real GDP and wages if the Fed had been following his (and our) advice. He’s instinctively rejected the wrong-headed limits to a growth model that pervades modern economics—as do we.
Growth has been in short supply so far this century in part because of this growth phobia at Central banks around the world….
…In February 2018, the Fed foolishly squashed a robust, full-employment/rising-wages recovery because he bought into the Fed’s wrong-headed “Phillips Curve” thinking, which posits that growth and wage increases incite inflation.
Trump fumed correctly that the Fed was fighting a phantom inflation.
Meanwhile, the stock market tanked and growth stalled out. Had the Fed not taken Trump’s advice and reversed course in early 2019, the economy would have capsized.
But now this same man says masks will help the economy recover.
This isn’t the first time Powell put his foot in his mouth. Often during or after Powell speaks, the markets crash. Today was just another day and another opportunity for Powell to fail.