Monetary Policy Will Stay Accommodative For A Very Long Time, Like Forever

Either way, it's a problem.

Inflation: How Should We Measure It?

The Fed brushes all this aside by pointing at the CPI. I have news for the Fed, the low CPI is a mirage. 

It's not the only measure of inflation that matters. 

For discussion, please see Inflation: How Should We Measure It?

There Are No Temporary Measures, Just Permanent Lies

On April 20, 2020, I declared There Are No Temporary Measures, Just Permanent Lies.

Fed Chair Jerome Powell stated the blatantly illegal junk bond-buying measures it was taking were "temporary". 

What a hoot.

Just like the Fed's announcement that its previous balance sheet expansion was "temporary".

The Fed had 10 years to unwind its balance sheet after the last crisis but never did. Now we have new balance sheet records every week.

There are no temporary measures, just permanent lies.

Very Long Time or Forever?

When the Fed says "accommodative for a very long time" they may as well be honest. They mean forever (or some sort of global currency crisis along the way to forever).

My bet is a currency crisis comes first.

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