{"id":1534101,"date":"2022-06-30T17:34:27","date_gmt":"2022-06-30T21:34:27","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1534101"},"modified":"2022-06-30T17:34:51","modified_gmt":"2022-06-30T21:34:51","slug":"federal-reserve-chairman-says-fixing-inflation-highly-likely-to-involve-some-pain-for-the-american-people","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-chairman-says-fixing-inflation-highly-likely-to-involve-some-pain-for-the-american-people\/","title":{"rendered":"Federal Reserve Chairman Says Fixing Inflation \u2018Highly Likely To Involve Some Pain\u2019 For The American People"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-reserve-chairman-says-fixing-inflation-highly-likely-to-involve-some-pain-for-the-american-people%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1534101&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a href=\"https:\/\/www.dailywire.com\/topic\/federal-reserve\">Federal Reserve<\/a> Chairman Jerome Powell said on Wednesday that fixing <a href=\"https:\/\/www.dailywire.com\/topic\/inflation\">inflation<\/a> will \u201chighly likely\u201d involve some pain for the American people, but claimed that failing to address it would be even worse for the nation and the <a href=\"https:\/\/www.dailywire.com\/topic\/economy\">economy<\/a>.<\/p>\n<p>During a panel at the European Central Bank forum, host Francine Laqua asked Powell, \u201cIf you\u2019re speaking out to the American people to try and help them understand how long it will take for, you know, monetary policy to go back to something that resembles normalcy \u2026 what would you tell them?\u201d<\/p>\n<p>\u201cI would say that we fully understand and appreciate \u2026 the pain people are going through dealing with higher inflation, that we have the tools to address that and the resolve to use them, and that we are committed to and will succeed in getting inflation down to two percent,\u201d he responded.<\/p>\n<p>\u201cThe process is likely, highly likely to involve some pain, but the worst pain would be from failing to address this high inflation and allowing it to become persistent,\u201d Powell added.<\/p>\n[embedded content]\n<p>The United States experienced record inflation in May as it skyrocketed to 8.6%.<\/p>\n<p>In an effort to manage high inflation, monetary policymakers at the Federal Reserve are\u00a0<a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades\">hiking interest rates<\/a>\u00a0\u2014 most recently through a 0.75% increment that represented the boldest move to battle inflation in nearly three decades. Rate hikes increase the cost of borrowing capital, thereby tightening business investment and consumer activity. Earlier in June, Federal Reserve Governor Christopher Waller warned that efforts from the central bank to tackle higher price levels would lead to higher unemployment.<\/p>\n<p>The Fed\u2019s chairman\u2019s answer came shortly after <a href=\"https:\/\/www.dailywire.com\/news\/fed-chairman-we-now-understand-better-how-little-we-understand-about-inflation\">admitting<\/a> that his understanding of inflation was more limited than he thought.<\/p>\n<p>Laqua had previously posed to the panel, \u201cHindsight is a beautiful thing, I know \u2026 but going forward \u2026 how do we need to look at inflation differently? So, for example, in the U.S. \u2014 the stimulus. Did we circulate the impact this would have on inflation?\u201d<\/p>\n<p>\u201cI think we now understand better how little we understand about inflation,\u201d Powell responded.<\/p>\n<p>The Bloomberg TV anchor responded with a chuckle, \u201cThat\u2019s not very reassuring.\u201d<\/p>\n<p>\u201cNo, honestly, this was unpredicted. I was looking at the time of our June meeting one year ago, of the 35 people who filed with a survey of professional forecasters, 34 of them had inflation below four percent for the last year. And of course, it was way above four percent.\u201d<\/p>\n<p>Powell also clarified that experts were using an outdated model to predict inflation, which is why none of our nation\u2019s supposed-brightest economic minds saw the inflation coming.<\/p>\n<p>\u201cSo really, everyone had the same model \u2014 which was the\u00a0<a href=\"https:\/\/www.investopedia.com\/terms\/p\/phillipscurve.asp\">Phillips curve<\/a>\u00a0model \u2014 and it just was not capable of producing high inflation. But what it was missing was something that\u2019s been completely missing in the data for 40 years, which is basically the collapse of the supply-side.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">Jerome Powell: &#8220;I think we now understand better how little we understand about inflation.&#8221;<\/p>\n<p>Host: &#8220;That&#8217;s not very reassuring&#8221;<\/p>\n<p>Jerome : &#8220;This was unpredicted&#8221;<\/p>\n<p>Only the &#8220;experts&#8221; and the media didn&#8217;t see this coming. <br \/>Just about everyone else did.<\/p>\n<p>Sound ON <a href=\"https:\/\/t.co\/6Gv35rXPrW\">pic.twitter.com\/6Gv35rXPrW<\/a><\/p>\n<p>\u2014 Wall Street Silver (@WallStreetSilv) <a href=\"https:\/\/twitter.com\/WallStreetSilv\/status\/1542214066218774528?ref_src=twsrc%5Etfw\">June 29, 2022<\/a><\/p>\n<p>The data indicate that the American people are already feeling \u201cpain\u201d from inflation and directly blaming President <a href=\"https:\/\/www.dailywire.com\/topic\/joe-biden\">Joe Biden<\/a> for it.<\/p>\n<p>Recently, CNN\u2019s senior data reporter Harry Enten explained that the University of Michigan\u2019s consumer sentiment survey \u201cis the worst consumer sentiment ever measured by the University of Michigan going all the way back since 1952.\u201d<\/p>\n<p>\u201cAnd in terms of why are consumers feeling this bad?\u201d the senior analyst continued. \u201cWell, it\u2019s pretty clear why they\u2019re feeling this bad, and that is because the Consumer Price Index is the worst it\u2019s ever been in a midterm cycle since \u201974; it\u2019s the worst it\u2019s been in any presidential cycle or midterm cycle since 1980. So, it\u2019s not much of a surprise. You can see it, it\u2019s literally off the charts on the table on your screen.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">CNN&#8217;s Harry Enten on Biden&#8217;s &#8220;awful&#8221; approval rating on inflation: Biden is &#8220;doing WORSE than Jimmy Carter&#8221; <a href=\"https:\/\/t.co\/2vbBx4tLvE\">pic.twitter.com\/2vbBx4tLvE<\/a><\/p>\n<p>\u2014 RNC Research (@RNCResearch) <a href=\"https:\/\/twitter.com\/RNCResearch\/status\/1536879096147460096?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/p>\n<p>Evidence also shows that Americans have <a href=\"https:\/\/www.dailywire.com\/news\/even-millionaires-cut-back-on-buying-homes-restaurant-food-gas-thanks-to-surging-inflation\">changed<\/a> their eating habits, vacation plans, and more as they struggle to make ends meet in Biden\u2019s economy.<\/p>\n<p><em>Ben Zeisloft contributed to this report.<\/p>\n<p><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chairman Jerome Powell said on Wednesday that fixing inflation will \u201chighly likely\u201d involve some pain for the American people, but claimed that failing to address it would be even worse for the nation and the economy. During a panel at the European Central Bank forum, host Francine Laqua asked Powell, \u201cIf you\u2019re speaking &#8230;<\/p>\n","protected":false},"author":326,"featured_media":1534145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1534101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1534101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/326"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1534101"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1534101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1534145"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1534101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1534101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1534101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}