You don't have a plan to stop a runaway Train if it occurs you know chair pal You are gambling with people's lives Federal Reserve chair Jerome Powell Testified in front of Congress today it Was well over two hours long and there Was this one moment this wild exchange Between Senator Elizabeth Warren and Powell as she rips Powell over Job-killing rate hikes and just Understand that in Jerome Powell's Opening remarks today he was still Pretty aggressive on what the future Holds for rate hikes although inflation Has been moderating in recent months the Process of getting inflation backed down To two percent has a long way to go and Is likely to be bumpy As I mentioned the latest economic data Have come in stronger than expected Which suggests that the ultimate level Of interest rates is likely to be to be Higher than previously anticipated so Even though the Federal Reserve has Already been Ultra aggressive this last Year we've never been pushed this Aggressively in history Jerome says Inflation is not over so the Federal Reserve is not done now if you're Invested in stocks this affects you as Well as if you're invested in crypto This affects you both markets dumped on The news let me ask you about what Happens if you do this so since the end
Of World War II there have been 12 times Senator Elizabeth Warren exploded on Jerome Powell not because of the stock Market or the Bitcoin price but because Of how the fed's actions are affecting The labor market unemployment in America So the FED has raised interest rates Eight times over the last year in what Has been the most extreme rate height Cycle in 40 years the fed's goal is to Slow inflation and your tool raising Interest rates is designed to slow the Economy and throw people out of work so Far you haven't tipped the economy into Recession but you haven't brought Inflation entirely under control either And maybe the reason for that is that Other things are also keeping prices High things you can't fix with high Interest rates things like price gouging And supply chain Kinks and war in Ukraine but you are determined to Continue to raise interest rates so I Want to take a look at where you're Headed in December the FED released its Projections on the state of the economy Under your monetary policy plan According to the fed's own report if You'll continue raising interest rates As you plan unemployment will be 4.6 Percent by the end of the year more than A full point higher than it is today Chair pal if you hit your projections do You know how many people who are
Currently working going about their Lives will lose their jobs I don't uh I don't have that number in Front of me I will say it's not it's Just demanded consequences well but it Is and it's in your report and that Would be about two million people who Would lose their jobs people who are Working right now making their mortgages So chair pal if you could speak directly To the 2 million hard-working people who Have decent jobs today who you're Planning to get fired over the next year What would you say to them how would you Explain your view that they need to lose Their jobs I would explain to people More broadly that that inflation is Extremely high and it's hurting the Working people of this country badly all Of them not just two million of them but All of them are suffering under high Inflation and we are taking the the only Measures we have to bring inflation down And A lot of work is just part of the cost And they just have to hear it well they Will will working people be better off If if we just walk away from our jobs And and inflation remains five six Percent let me Have World War II there have been 12 Times in which the unemployment rate has Increased by one percentage Point within One year exactly what you're aiming to
Do right now how many of those times did The U.S economy avoid falling into a Recession You know it's it's not as black and White as it varies Written a book on this and there's been 12 times that we've seen a one point Increase in the unemployed in the Unemployment rate in a year that's Exactly what your fed report has put out Is the projection and the plan based on How you're going to keep raising these Interest rates how many times did the Economy fail to fall into a recession After doing that out of 12 times I think The number is zero I think the number is Zero that's exactly right so then the Question becomes we've got two million People out of work can you stop it at Two million people Um history suggests that the FED has a Terrible track record of containing Modest increases in the unemployment Rate once the economy starts shedding Jobs it's kind of like a runaway train It is really hard to stop in fact in 11 Out of the 12 times that the Unemployment rate increased by a full Percentage Point within one year Unemployment went on to rise another Full percentage point on top of that if That's what happens this time we'd be Looking at at least three and a half Million people who would lose their jobs
So chair Powell if you reach your goal And 2 million people get laid off by the End of this year and then just like in 11 out of 12 times that unemployment has Risen by a point in a single year it Keeps on Rising and then we've got two And a half million people out of work With got three million people who get Laid off we've got three and a half Million people who get laid off what's Your plan Well right now the unemployment rate is 3.4 percent which is the lowest in 54 Years and we actually don't think that We need to see a sharp or enormous Increase in unemployment to get Inflation under control I'm looking at Your projections do you call two laying Off two million people this year not a Sharp increase That to the two million families who are Going to be out of work we're not again We're not targeting any of that but I Would say even four and a half percent Unemployment is is well better than than Most of the time for the last you know 75 years in other words you don't have a Plan to stop a runaway train if it Occurs it You are gambling with people's lives and There's a pile of data showing that Price gouging and supply chain Kinks and The war in Ukraine are driving up prices You cling to the idea that there's only
One solution layoff millions of workers We need a Fed that will fight for Families and if you're not going to lead That charge we need someone at the FED Who will So Elizabeth Warren essentially calling For the end of Jerome Powell get Somebody new in there of course Biden I Believe would have to appoint that Person but just looking at the current United States employment rate employment Has almost never been lower and finally My final question is looking at the Federal funds rate yes we will require a Few more and then probably hold at those Levels but how much more where do you See the terminal fed funds rate Landing In this cycle so we last wrote down our Uh our assessments individual census to That in December and and I think the Median range was basically people were Clustered between five and five and a Half we're going to write down those Again uh as part of them we do it four Times a year we'll do it around the March meeting which is on the 21st and 22nd of March and as I indicated in my Testimony I think the the data we've Seen so far and we still have other data To see we still have significant data to See before the meeting suggests that That the the ultimate rate that we write Down will May well be higher than what We wrote down in December got it thank
You Mr chairman so the next Federal Reserve meeting is this month March 21st Through 22nd with the results coming in On the 22nd and keep in mind we also Have the next CPI report inflation Report coming in this month March 14th The minute that happens I'll make a Video I'll keep you updated and many of You are still asking when is Bitcoin 2023 awesome conference well it's in Miami Beach May 18th through 20th use Code altcoin daily for 10 off your Ticket
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