What Jerome Powell JUST Said in Congress

we know that jerome powell made it very

clear and this is something that he

believed regularly

that when we look at the inflation

numbers the cpi inflation numbers

they continue to come up in what he

calls well areas well

restricted to categories associated with

the short

term reopenings and if we think about

the last cpi report when we look at the

headline numbers

we know and and this is the thing that

we always have to consider okay

we know that all of a sudden what

happens

with inflation is when we get big

headline numbers you get media folks

who all of a sudden go nuts over the

headline

now i don't blame them because they put

the details in their articles as well so

it's not their fault

just society loves to eat up these

headline numbers

the problem with these headline numbers

is they are misleading

when we look at the actual details

within the cpi report we see it's used

cars

up again we see its air travel up again

but guess what was not

up last time that was last time only up

0.4 percent

but is up over 10 this time

hotels and lodging right so these are

all it makes sense these are part

of the reopening in fact we've been

we've been doing so many rallies over

the last uh

two weeks we've did nine rallies over

the last last two weeks for the campaign

we've got our tenth rally coming up in

bakersfield which you're welcome to come

to totally for free go to meetcam.com

but we're basically saying in our

campaign we're the reason hotel and

lodging prices skyrocketed so we're

sorry everyone

but we've been booking so many hotels

it's probably our fault so

sorry about that but anyway that's also

temporary

so uh jerome powell was was then also

asked

specifically about uh the housing market

and how mortgage-backed securities

might affect uh the housing market and

their continued purchases

of these uh these mortgage-backed

securities uh and he mentioned that uh

he is in in the camp that would rather

taper both treasury bonds and

mortgage-backed securities at the same

time

that's because you actually have two

camps within the federal reserve

when you read the federal reserve

minutes you can see this division

between some folks at the federal

reserve

who want to only taper mortgage-backed

securities because they believe that the

real estate mortgage market has plenty

of liquidity

but others say look we've got plenty of

liquidity at the treasury market as well

so let's just taper both together so

this is something that

this is the first time we've actually

heard him align with which side

he is on addition to that regarding uh

worker shortages

he mentions that it's one thing that i

thought was very interesting

is he mentioned that he didn't think the

extra unemployment boost the 300

per week is going to be first of all

it's not going to be much of a factor

for much longer

but he also mentioned that he's not

seeing a very big difference between

states who have prematurely cut the 300

per week and states that have not cut

the 300 per week

he's not seeing that difference in

actually seeing more workers come back

instead he believes a bigger factor in

what's happening in the labor market

is this mismatch between people who

basically had a job who had a career and

and all of a sudden

need to relocate into a new career or

into a new business or into a new field

of work

that right now doesn't fit their current

skill set

and so this is a belief that jerome

powell has now

the problem is and and he was pretty

clear about this it's

very difficult to be certain exactly

what's going on and he's very

transparent about that which i

appreciate

there are a lot of times during his uh

testimony that he said you know i don't

have the answer to that

and what i've one of the things that i

found for example when i'm on campaign

rallies

is people appreciate you answering their

question

like answer the freaking question so

when i answer the question which i do

very bluntly especially in the last

10 10 and last couple weeks of rallies

where this is exactly what folks want

i'll clearly say i don't know the answer

to that but i'll find out and we'll get

back to you

i'll even say this is my suspicion but

my suspicion could be wrong but i make

my stance very very clear and this is

what jerome powell is doing he's giving

us an answer

i don't know this is what i think but as

soon as we know more will give it to you

and in fairness i'd rather that then

feel like jerome powell is just lying to

us

and uh and then he's gonna backstab us

right like

you know that the saying it's better to

be strong and wrong

than weak and right i personally

disagree with that and i actually think

jerome powell disagrees with that as

well

all right so let's keep going here we

have

powell was also asked about digital

currencies in a future digital

uh dollar uh is a note that i have here

oh yeah okay

so yeah basically this particular

portion here

uh the federal reserve announced and

this was a new one that they're going to

release a report in september about how

they might be able to actually include

the benefits and risks of a digital

dollar so a central bank a

central bank digital currency to be

clear they've been working on this for

years

it's it's old news at this point jp

morgan uses an ethereum based

jpm coin uh other banks are

experimenting with these

they're great they're used for

institutional investors

regularly doing across border transfers

they're phenomenal for these purposes

what kind of additional benefits they

would actually contribute to the us

economy if we had a fed coin

we don't really know yet and the federal

reserve says look we don't need to be

first

we just need to be right in how we do uh

central bank digital currency

so uh yeah those were those were the big

takeaways

from the federal reserve john powell we

did also have

mention let's see here no

i covered that already yeah okay oh this

was interesting

so uh let's see here

okay this is interesting he also i also

have this note here

that jerome powell is also someone who

prefers to taper

a little bit later than expected now so

a lot of folks

think the taper could come as soon as

really like august or maybe even

uh late august somewhere around here

that within the next meeting or two we

could see a table

most people believe that the taper would

begin

in quarter one of 2022 which is january

through

march however the market on average is

kind of suggesting ah but it could be as

it could be a month earlier it could be

a month later or

you know sort of december to like april

that's

kind of the range that uh most like if

there were a bell curve

the peak of the bell curve of where

expectations are for a taper

would be somewhere between december and

april and the

interesting thing about this is we know

that jerome powell is in favor of

actually tapering

later i personally do not expect

the federal reserve to taper until we

get september and october

inflation data cpi data now keep in mind

september and october cpi data won't

actually come out

until october and november

right so it's it's always hurry up and

wait with uh with the markets but

anyway this is this gives you an

overview and a summary my belief on

exactly what jerome powell

just said so you have details on this

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