The great pretending continues. During a Sunday talk show appearance, San Francisco Fed Chair Mary Daley states, “what I see is supply and demand are just unbalanced. About 50% by my own staff’s estimates of the excess inflation we see is related to demand. The other 50% to supply.” Note, she is not talking about energy.
Margaret Brennan, maintaining her position as the professional CBS narrative engineer, never thinks to ask: (a) where is this demand you speak of, and what exactly are they demanding? and/or (b) What is this 50% inflation on the supply side connected to? Obviously, an actual probing of inflation wasn’t in the script. The great pretending continues. [Transcript Here]
CTH has stated without reservation that August’s inflation report will show a significant –albeit temporary– drop in inflation as measured by the govt. The drop in gasoline prices throughout July (created by a drop in demand) will allow the fiscal and monetary policy makers to falsely claim overall inflation peaked. However, after a brief respite the inflation now growing in the ground (massive increases in farm costs), will then launch into the food supply chain. This delayed food inflation will overtake the energy inflation in the latter part of this year. WATCH:
[Transcript] – MARGARET BRENNAN: We turn now to the state of the economy and the president of the San Francisco Federal Reserve Bank, Mary Daly. Good morning to you.
FEDERAL RESERVE BANK OF SAN FRANCISCO PRESIDENT MARY DALY: Good morning.
MARGARET BRENNAN: The San Francisco Fed said fiscal spending during the entirety of the pandemic, all the congressional funding contributed 3%- a 3% hike in inflation. Do you expect the congressional bill that’s about to pass to add to inflation as well?
DALY: Well, let’s remember that during the time that there was this fiscal relief during the pandemic, there was also monetary policy relief. And those were things necessary to get us through the pandemic. So that’s why that was such an important component in history, will be the judge, whether it was too much or too little. But right now, that’s where that was. And my staff have evaluated that. When I look forward, there are so many things going on in the economy right now, both domestically and globally. And we are struggling with high inflation. But the Fed is committed to bringing that down. And we’re looking at not only things that Congress passes, but also what happens across the entire world.
MARGARET BRENNAN: So do you think this bill will- will add to inflation? Has inflation peaked? Can you say that?
DALY: You know, I really can’t comment on pending legislation, and it’s really hard to tell because all the details haven’t been worked out yet and or the time frame in which those things will take place. So right now, I think the most important thing, Margaret, is that inflation is too high and the labor market is strong. The global economy is struggling with ongoing high inflation, and that’s what I’m focused on.
MARGARET BRENNAN: You are a labor economist. We had this surprisingly strong jobs number on Friday. Why was it so surprising? What was it that economists missed here? What was your takeaway?
DALY: You know, it’s super interesting. You know, it did surprise everyone who tries to figure out exactly what the number will be. And we were you know, a number of projections were well off. But, you know, frankly, if you’re out in the communities, if you’re you’re traveling anywhere, you’re you’re just going in your own community. I don’t think consumers are workers or businesses were that surprised. There’s help wanted signs all over the place. People are can find multiple jobs if they want them. Search times for jobs aren’t that long. So I think the labor market is continuing to deliver. It just tells me that people want to work and that people want to hire. But the universal truth is that inflation’s too high.
MARGARET BRENNAN: But does it still or does it indicate that recession is not where we are or where we’re going?
DALY: If you’re out in the economy, you don’t feel like you’re in a recession. That’s the bottom line. The most important risk out there is inflation. And I think the job market just confirms that.
MARGARET BRENNAN: Okay. We’re going to take a break and come right back with you. Mary Daly, stay with us. We have more questions.
*COMMERCIAL BREAK*
MARGARET BRENNAN: Welcome back to Face the Nation. We continue our conversation now with the head of the San Francisco Federal Reserve Bank, Mary Daly. In that jobs number on Friday, we also saw that wages rose, but they’re not rising as quickly as inflation is. How concerned are you that that shows inflation is really becoming embedded in the economy in a way that is really going to force sure your colleagues at the Fed to continue to have to hike rates.
DALY: You know, I don’t see inflation is embedded in the economy, the kinds of things that we would worry about just not being able to correct easily. What I see is supply and demand are just unbalanced. About 50% by my own staff’s estimates of the excess inflation we see is related to demand. The other 50% to supply. The Fed is really well positioned to bring demand down, and we already see the cooling forming in the housing market and investment. So I do see signs that the economy is cooling. It just is going to take some time for the interest rate adjustments we’ve made to work their way through. And we are far from done yet. That’s the the promise to the American people. We are far from done. We’re committed to bringing inflation down and we’ll continue to work until that job is fully done.
MARGARET BRENNAN: So it would still be appropriate to raise rates in September by half a percent?
DALY: Absolutely. And we need to be data dependent. It could. We need to leave our minds open. We have two more inflation reports coming out, another jobs report. We continue to collect all the information from the context we talk to you to see how this is working its way through the economy. But you mentioned, you know, wage growth a little bit above 5% inflation. Last print at 9.1%. Americans are losing ground every day. So the focus has to be on bringing inflation down.
MARGARET BRENNAN: One of the things the Fed can’t control is geopolitical risk. How concerned are you about what is happening in the Taiwan Strait right now?
DALY: Well, there’s so much going on globally, and I think that’s really something that we need to think about. It’s just getting through COVID, making sure the new variants don’t derail economic activity. We have central banks across the globe raising interest rates to try to bridle their own inflation. And we have ongoing developments that take place geopolitically or just more generally among countries and all of those things. The war in Ukraine, all of those things create headwinds, if you will, for the US economy and we’re going to have to lean against those headwinds for growth while we bridle inflation.
MARGARET BRENNAN: The Fed has its work cut out and I know we’ll be talking again. Thank you very much, Mary Daly. (LINK)
The endless parade of public figures across our TV and internet screens is meaningless and irrelevant to the realpolitik that is the true moving force in the world. It’s a brilliantly scripted drama, played out to make citizens believe they have a part in their governance — and freedom in their person. Everything that structures our existence is happening far out of sight and out of mind of “ordinary folk” — A two-tiered society that is unimaginably separate and unequal/powerful and powerless.
from where I sit there is less demand for food because people can’t afford
to purchase what they used to…….so? If less demand for fuel created lower
costs, why haven’t we seen this at the grocery store?
I don’t see fuel production having near the cost increase to produce it as food. Fruits and vegetables won’t see near the inflation as multi ingredient processed items we’ve all come to rely on either. Ad on the price increases for every single item necessary to make whatever particular product, and you have a real disaster in the making. As the various vendors in the production process start to fail, we will see a cascading effect of collapsing companies that will probably grow to a tidal wave.
“The Federal Reserve Is a Cartel” – G. Edward Griffin
from the comments: “This man is 80 years old and he is STILL out there doing everything he can to expose one of the greatest scams ever perpetrated against mankind (fractional, fiat, debt-based “money.”)
The Creature From Jekyll Island | G. Edward Griffin
G. Edward Griffin answers the questions of Where does money come from? Where does money go? Who makes money? The money magicians’ secrets are unveiled. We get a close look at their mirrors and smoke machines, their pulleys, cogs, and wheels that create the grand illusion called money. Recorded in 1994 with more elaboration on the Fed by G. Edward Griffin.
There is so much we need to learn about finance and economics. If we don’t, how can we ever deal with how it drives our lives?
Finance is where money manipulators take the simple process of economics, and make it into a fluster cluck so insane, that it’s only real value is to the crooks that run it.
And that value is immense and powerful as it accumulates free from the constraints regulating legitimate transactions.
It’s 100% climate hoax bs lies.
underpants gnomes
Well, Milton Friedman says inflation is only made in Washington because only Washington can create money. Consumers don’t produce it. Producers don’t produce it. Trade unions don’t produce it. Sheiks don’t produce it. Oil imports don’t produce it. What produces it? Too much government spending and too much government creation of money. And nothing else.
Margaret Brennan looks like she was squeezed into her dress with a pastry bag like a cannoli.
if this isn’t proof that we need to forcibly eject these elites and incarcerate them for the rest of their natural lives, then I’m not sure what else will suffice.
dump the fed and joebama & crew
Daly – “… people want to work…”. No they don’t.
The US is exporting record amounts of diesel fuel in recent months per Bloomberg. Unlike gas prices, which are dropping in large part to the declining demand by consumers squeezed by inflation, diesel prices remain high. As the current harvest begin in the US, the diesel prices will push inflation higher yet. Unfortunately between the timing of the harvests and the administration’s skill at painting partial pictures of the economy, I fear that the next big inflation hike will appear after the mid term elections. Everything that the Democrats due is based upon the two year election cycles. This disaster of a legislative action that made it through the Senate on Sunday should destroy their chances in the mid terms, but it won’t because of the timing. If nothing else, Democrats are devious bastards, and Republicans seem to lack the required skills and most assuredly the access to an honest media to present their positions to the voters. God help us if we don’t see a red wave in November .
by definition, supply and demand can’t be “unbalanced”. the two curves intersect somewhere. always. in a situation where they are not intersecting, that means there are zero of that particular item being bought or sold
They have to blame “demand” because that’s the only thing raising rates will fix. If they acknowledge supply side issues (govt imposed) then raising rates actually increases inflation.
I feel like one of the three blind men describing an elephant.
My gut feeling is that history will list this period as just prior to the first global eugenics war.
Brilliant! I tells ya.
Don’t forget housing costs are through the roof and energy costs not related to oil and gas continue to go up. A little less at the pump can’t offset all the other indicators.