Repeating the mainstream Presstitute and political mantra, Federal Reserve Chairman Jerome Powell declared last Wednesday that besides pumping in more digital money backed by nothing and printed on nothing to inflate the economy… public vigilance, such as social distancing, is crucial to the speed of the economic recovery.
He added that even if millions of workers return to their jobs later this year, the recovery will have “a long tail,” during which millions more whose jobs depend on large gatherings in close proximity indoors will remain out of work.
“We have to… plan for the worst,” Powell said, adding the fate of the U.S. and world economies depend on the speed with which the COVID virus can be beaten back.
The Fed has used its arsenal of policy tools and has little more it can do to boost growth and employment, Powell noted.
“Fiscal policy” – adjusting tax rates and federal spending, the purview of Congress and the president – “can address things we” at the Fed “can’t,” he said.
Congress negotiating an additional $1 trillion in financial aid for the U.S. economy “is a good thing,” Powell said.
The Fed’s leaders made no changes to interest rates, policies, or programs at their meeting last week.
TREND FORECAST: As we continue to note and as articulated over the months by Gregory Mannarino in his Trends Journal articles, the Federal Reserve and Washington will do all they can to keep equities artificially propped up.
The more money pumped into the markets and economy, the lower the dollar will fall and the higher gold and silver prices will rise.
On the national front, it is estimated that the U.S. federal deficit, according to the Congressional Budget Office, will hit a peacetime record of nearly 18 percent of the GDP for 2020.
The dollar, which was up almost 33 percent from its July 2011 low, has fallen to a two-year low. We forecast it will continue to move sharply lower because of massive stimulus and monetary methadone injections to keep the Wall Street money junkies from crashing.
Again, among the implications, will be rising precious metal prices.
