The Fed is about to wind down its emergency economic stimulus, Jerome Powell hints

Oh, so you are okay if some of that printed money goes to rich people, as long as it is below a certain percentage of that total?

What is that percentage? 20%? 30%? 50%? 70%?

You realize that right now it's probably somewhere around 75 or 80%.

 

I think it should go to the working class, then the rich will create jobs to get that money, if you give the money to the rich, they already have it, no need to create jobs

 

So will you support a stimulus policy or not, if 80% of it is going to the rich?

Answering this question is equivalent to answering whether or not you approve of the Fed's current stimulus policies.

 

The Fed is supposed to use its money creation power to buy federal government debt instruments from the private sector, mostly banks, allowing the private sector to determine who gets the newly created money next. But since early 2020, the Fed has been using its money creation power to buy corporate bonds even though corporate bond prices were already at record highs. It has been buying stocks even though stock prices were already at record highs. It has been buying mortgage-backed securities even though real estate prices have reached record highs. It is not possible to understand the Fed's actions as other than a deliberate scam to pay the super-duper uber-rich peak bubble prices for their assets, at the expense of everyone who will be left holding such assets, especially dollar-denominated assets, especially debt, when the rug is inevitably pulled out.

 

What's the downside risk of doing nothing? What's the downside risk of doing nothing in the very long term no matter the costs?