Was Last Month’s Fedwire A Coincidence?

Federal Reserve Chairman Jay Powell rarely gives media interviews. Most of his interaction with journalists takes place in the carefully controlled – and credentialed – environment of post-meeting press conferences. One notable exception was last May when the Fed’s head guy visiting with 60 Minutes so that he could, pardon the expression, lie his ass off.

Today, March 25, 2021, Powell went back into the interview setting this time on the radio with NPR’s Steve Inskeep. Like Scott Pelley had for CBS News, Inskeep teed up the appearance with the most favorable, softball introduction; even reaching back and plucking up Jay’s most infamous lie from last year’s farce.

STEVE INSKEEP: Jerome Powell is on the line. He is the chair of the Federal Reserve Board charged with helping to manage the world’s largest economy. One year ago, the Fed was effectively printing enormous amounts of money, unprecedented amounts, creating trillions of dollars to help avoid economic collapse in the early stages of the pandemic.

Powell, of course, failed to correct the error since he’s the one who started it! Before May 2020, Fed Chairman had been very careful to let the media spin QE and LSAP’s into the “money printing” in the public’s imagination central bankers know full well that it isn’t. Gobs, two decades now, of their own scholarship and the most they can say about it is that it – arguably – “helps” lower interest rates that are already going lower anyway.

Now you see why the guy would lie about “money printing.” Desperate times and all that.

Acknowledging, at least, this framework, Powell had the audacity to liken those monstrous QE efforts to the emergency evacuation of the Dunkirk battlefield in the earliest stages of World War 2.

JEROME POWLL. And we knew that in hindsight we would, there would be learning that we would get that we could do things better. But I think that strategy — I liken it to Dunkirk, you know, when it was time to get in the boats and get the people, not to check the inspection records and things like that, just get in the boats and go. And that’s what we did. I think overall it was a very successful program and I think history will treat it well.

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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