Jerome Powell Finally Concedes Inflation is Rampant, Sen. Warren Calls Him a ‘Dangerous Man’ to Lead the Fed

Major US stocks and indices were sent sharply plummeting on Tuesday, as markets began to price in a stagflation recipe of upcoming interest rate hikes, surging inflation, and reduced economic output.

The S&P 500 sank more than 2% while the Nasdaq Composite was down nearly 3% at the time of writing, marking the wort day for both indices since May. Over 85% of stocks comprising the S&P 500 also fell lower for the day, while the 10-year Treasury yield— which moves inversely with prices, soared by almost 4 percentage points on Tuesday to just above 1.54%— the highest since June.

The latest market turmoil comes as investors are beginning to price in a hawkish shift in monetary policy, after last week’s FOMC meeting revealed half of its members penciling in an interest rate hike as early as 2022. Then, to further add to the market’s panic, Fed Chair Jerome Powell Captain Obvious warned that price pressures stemming from supply bottlenecks and disruptions are significantly more pronounced and persisting longer than expected.

“As reopening continues, bottlenecks, hiring difficulties and other constraints could again prove to be greater and more enduring than anticipated, posing upside risks to inflation,” he said during his testimony to the Senate Banking Committee on Tuesday. However, despite finally conceding that the economy has become stronger and that inflation is in fact, running rampant, Democratic Senator Elizabeth Warren apparently does not seem convinced that Powell really knows what he is doing.

During the hearing before the Senate Banking Committee, Warren publicly announced that she is opposing Powell’s renomination as the Fed’s Chair, calling him a “dangerous man” to be in charge of America’s central bank. Warren, who has been a strong critic of Powell’s potential second term, cited his lenient stance on banking regulation as the reason why he is undeserving of more time as the Fed’s Chair.

“I came to Washington after the 2008 crash to make sure that nothing like that would ever happen again. Your record gives me grave concern,” Warren said, addressing Powell during the hearing. “Over and over, you have acted to make our banking system less safe. And that makes you a dangerous man to head up the Fed, and it’s why I will oppose your renomination.”

Warren then brought up a number of examples where Powell guided the Fed into relaxing regulations, including the decision to forego liquidity requirements for major Wall Street firms. The Senator’s latest remarks come as two of the Fed’s top central bankers prepare to step down in response to an ethics review that revealed the pair allegedly made controversial investments during the Covid-19 crisis in 2020.


Information for this briefing was found via the Federal Reserve and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Powell: ‘No’ to Resignation Under Trump

Federal Reserve Chairman Jerome Powell declared Thursday he would not step down if requested by...

Friday, November 8, 2024, 06:55:42 AM

Morgan Stanley: Fed’s Taper Could be More Detrimental to Stock Markets Than Omicron

It appears that someone is not happy about the Fed’s latest hawkish move to accelerate...

Thursday, December 9, 2021, 04:37:00 PM

The Fed Needs to Raise Rates ‘as Soon as Possible’ Says Bill Ackman, While Janet Yellen Assures Inflation is Just Temporary

America’s inflation problem has gotten so out of control, even billionaire hedge fund manager Bill...

Saturday, October 30, 2021, 11:12:00 AM

Rapid Pace of Rent Increases in the U.S. Seems to Argue for Aggressive Action by the Fed

The stock market is facing two main obstacles: 1) the global economic impact of the...

Tuesday, February 22, 2022, 03:41:00 PM

The Great Rotation Is Coming To Natural Resources – The Daily Dive

For our final episode of the trading week, we are joined on the Daily Dive...

Friday, July 16, 2021, 01:30:00 PM