Finance

As US Economic Data Crashes, Biden 'Invites' Powell To Oval Office

As US Economic Data Crashes, Biden ‘Invites’ Powell To Oval Office

Shit is not going well for President Biden… and blaming Putin is not working…

Despite proclamations of the ‘strongest economy ever’ or some such gaslighting, Americans’ cost of living is rapidly outstripping their wage growth as those with assets (stocks and real estate) are facing an annus horibilis, and those without assets are forced to borrow at higher and higher rates of interest to cover day-to-day expenses…

So it little wonder that President Biden will reportedly hold a rare Oval office meeting on Tuesday with Fed Chair Jerome Powell amid the highest inflation in decades, which has angered Americans and hurt his standing with voters.

According to a White House statement, the two will discuss the state of the American and global economy. Bloomberg reports that, it’s the first meeting between the two since Biden in November announced his intention to nominate Powell for a second term at the helm of the US central bank, according to a record of the Fed chief’s public schedule which is available through March.

Mr. Biden has said he won’t tell the Fed what to do but has broadly supported the Fed’s plans to withdraw stimulus.

“I believe that inflation is our top economic challenge right now, and I think they do too,” Mr. Biden said on May 10.

As The Wall Street Journal reports, while presidents and the party in power have often favored lower interest rates to support stronger growth, polls show that inflation is very unpopular, and Democrats are bracing for losses in this fall’s midterm congressional elections. Consumer confidence has slumped amid rising prices of food and gas. Lawmakers in both parties have supported the Fed’s efforts to raise interest rates, with some criticizing the Fed for having waited too long to do so.

Remember, as the stock market was hitting record highs in Nov 2021, real estate sales were soaring and the economy was being allowed to reopen by the government, President Biden explained why he renominated a Republican appointee (and as Liz Warren said “a dangerous man”) promising that he will “maintain the independence of The Fed.”

“The Federal Reserve is an independent operation,” he said in April 2021.

“I want to be real clear that I’m not going to do the kinds of things that have been done in the last administration… telling them what they should and shouldn’t do.”

However, everyone has a plan until they get punched in the mouth… The last month has seen one of the biggest run of serial macro data disappoint in history, crashing US Macro Surprise Index to its weakest since Sept 2021

As Global Stagflation accelerates…

So given Biden’s ‘invitation’ for a chat, we wonder, did the president finally realize that market crashes, free-falling real-estate, and recessions poll worse than hyperinflation…

Because it appears whatever he is doing is not working as his approval rating nears record lows once again…

If Powell now suddenly pivots to more dovish talk, ‘pause in September’, transitory-inflation once again… is there any doubt that the ‘independent’ Fed is just a figment of America’s imagination, like “equal justice for all”?

Tyler Durden
Mon, 05/30/2022 – 16:15

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