Wealthy American class loses 78 billion dollars in eight minutes

Governor Jerome Powell unequivocally announced on Friday at a symposium of central bankers in Jackson Hole that in the fight against stubborn inflation, it will be necessary to insist on a restrictive monetary policy for a long time, so now there is no longer any expectation that the Fed could already start in the middle of next year another cycle of interest rate cuts.

It is interesting that a document was also published in Jackson Hole, in which the authors (from the Fed’s Chicago branch) say that in efforts to reduce inflation, it will not be enough to raise interest rates alone, but fiscal measures will also be necessary.

Solving the problems with only monetary measures could even make things worse, as higher debt costs will only increase inflationary expectations. “The Fed can reduce inflation only with an effective fiscal plan that would stabilize the debt,” say the authors of the document.

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