By VILLEM MAHERSTEIN
January 4, 2019 - San Francisco - CA - PipeLineNews.org - Fed Chair Powell was the bearer of good news on Friday, announcing he was taking a less invasive approach to an economy that is already the stuff of record books.
The job report [+330,000] indicated that the President’s efforts to de-regulate the economy he inherited has paid off in grand fashion.
Not only was the total number of new jobs created positive news but more important, the size of the labor force has begun to increase, drawing people into active participation in the economy when previously they had been on the sidelines.
During a panel discussion held in DC at the American Economic Association, Fed Chair Powell said that the economy has“good momentum” and that he is revising his tight money policy and with be “patient” as far as interest rate hikes are concerned.
Extending his remarks, Powell said, “with the muted inflation readings that we’ve seen coming in, we will be patient as we watch to see how the economy evolves…We’re always prepared to shift the stance of policy and to shift it significantly if necessary.”
Powell’s statement combined with the continued expansion and today’s impressive metrics lit a fire under Wall Street where the bellweather DJIA rose 750 points.
Over the last two weeks the President has been relentless in his attacks on what had then been the Fed's bearish plan to hike interest rates through 2019 and into the election year, 2020:
“I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!”
“It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!”
After today's performance this president having backed the Fed down should indeed take the victory.
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