There was indeed comedy at the FED's press conference today. The FED tried to pass a meagre raise of interest rates, of a mere 25 basic points as "hawkish".
Despite being a disgrace as central banker, Jerome Powell deserves credit as the great comedian he is
The FED even dares to mention an inflation target of 2%, ignoring that inflation is close to 8% (official data), and the inflation that the average household is experiencing is closer to 15% than to the
official data cooked by the BLS for the Federal Reserve... with that accuracy for data, that attention to detail, that closeness to reality, those guys would have done a great job auditing Enron, by the way!
Disclaimer: I thought BLS meant "bullshit" but apparently it means Bureau for Labour Statistics and those are the guys and girls who cook the CPI to make it look lower than it is.
March 16, 2022
Federal Reserve issues FOMC statement
For release at 2:00 p.m. EDT
Indicators of economic activity and employment have continued to strengthen. Job gains have been strong in recent months, and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.
The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.
The Committee seeks to achieve maximum employment
and inflation at the rate of 2 percent over the longer run. With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2 percent objective and the labor market to remain strong. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Esther L. George; Patrick Harker; Loretta J. Mester; and Christopher J. Waller. Voting against this action was James Bullard, who preferred at this meeting to raise the target range for the federal funds rate by 0.5 percentage point to 1/2 to 3/4 percent. Patrick Harker voted as an alternate member at this meeting.
Implementation Note issued March 16, 2022