The Federal Reserve is certainly hurting more than helping these days.
Printing money out of thin air will always wreak havoc.
And now Americans will pay the price for these central banking decisions.
We are already paying the price for all the federal government missteps, but now our quality of life is taking a huge hit thanks to Federal Reserve decisions since the pandemic began.
The recession is here already
Changing the modern interpretation of what a recession is does not stop it from happening.
There has been negative growth in the United States for two consecutive quarters.
And this quarter is not looking positive either.
Some talking heads and admin officials claim we are not in a recession.
But by classic economic textbook terms, we are in a recession already.
Either way, you can add falling GDP to the list of items impacting the daily lives of Americans – along with rising interest rates and out-of-control inflation.
Treasury Secretary Janet Yellen said that while negative growth is usually associated with recessions, we have lots of jobs.
Yellen has been wrong before.
And then the White House is well-aware of the role the economy plays in Midterm elections.
The Biden administration is hoping Merriam-Webster can take a little break until after elections.
The Fed’s money printing press has been running on full blast
There is unprecedented growth in the money supply thanks to the Federal Reserve.
Even Steve Hanke, a professor of applied economics at Johns Hopkins University, has said as much.
Hanke also noted that the chance of a U.S. recession is up to 80% now.
And Hanke did not mince words in blaming the U.S. central bank for rising inflation.
There is a combination of negative growth and too much money in circulation these days.
Hanke has been critical of the Federal Reserve in the past – namely, their inability to keep track of all of the dollars floating around in the U.S. economy.
What the future holds
Increasing the money supply has contributed to inflation, and the Federal Reserve has been reactionary.
Similar to Yellen, current Federal Reserve leadership has been reactionary as well.
Federal Reserve leadership has ignored – or does not understand – the causes behind inflation and our current economic crisis.
The U.S. central bank has yet to admit that money supply growth impacts our market.
They have continued to chase lagging indicators like employment rates.
Since the pandemic began, the U.S. central bank has continued to make wrong choices at every turn.
Unfortunately, Americans have paid the price on these decisions with consumer price indexes through the roof and devalued currency.
Hanke believes 2023 will bring a more standard recession that could extend to 2024 and beyond.
Similar to the federal government, the Federal Reserve banking system needs to be held accountable.
US Political Daily will keep you up-to-date on any developments to this ongoing story.