Run it hot | Metals Mine

  • Run it hot

    From spectramarkets.com

    Jerome Powell has had a change of heart. July 30th, he was saying that breakeven levels of employment are low and inflation is an issue. Two days ago, the FOMC Minutes said: “A majority of participants judged the upside risk to inflation as the greater of these two risks, while several participants viewed the two risks as roughly balanced, and a couple of participants considered downside risk to employment the more salient risk.” “Several participants noted concerns about elevated asset valuation pressures.” Today he decided that employment is actually totally the bigger concern and so inflation is fine. ... (full story)

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Polimini
Aug 23, 2025 2:31am
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Quoting Fractality
No, if you take some time to listen to his speech, he explains very well why the focus should be on employment and not so much inflation right now.
won't high inflation create a even bigger employment problem?
He is just afraid to be on Trump's radar as it seems Trump can pretty much do whatever he wants, including starting criminal investigations on people that go against him, and he owns the fbi, the courts.
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Fractality
Aug 23, 2025 2:59am
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Powell reiterated that: “In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside—a challenging situation. When our goals are in tension like this, our framework calls for us to balance both sides of our dual mandate.” And, it’s the employment side that is starting to weigh heavier and shifting the balance.
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Fractality
Aug 23, 2025 3:00am
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Though still referring to the labour market as being in balance, Powell said: “it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers. This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment.” Meanwhile, the upside risks to inflation stoked by tariffs are still high though not intensifying at this point.
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cholera
Aug 22, 2025 3:38pm
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he's just another moron w/ too much power
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Fractality
Aug 22, 2025 6:14pm
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No, if you take some time to listen to his speech, he explains very well why the focus should be on employment and not so much inflation right now.
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Fractality
Aug 23, 2025 2:56am
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You are right, it might create a bigger inflation problem. But what he says fundamentally is that it is relatively tamed. If unemployment starts to creep in you get stagflation.
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