Fed Chair Jerome Powell says the massive influx of illegal immigrants under Kamala has RAISED the unemployment rate: “There’s been quite an influx across the borders, and that is actually one of the things that’s allowed the unemployment rate to rise.”
Fed Chair Jerome Powell on the border crisis: “If you’re having millions of people come into the labor force then — and you’re creating 100,000 jobs, you going to see unemployment going up. It depends on the trend underlying the volatility of the people coming into the country. We understand there’s been quite an influx across the borders, and that has actually been one of the things that’s — that’s — that’s allowed unemployment rate to rise and the other thing is just the slowing hiring rate, which is something we also watch carefully. So, it does depend on what’s happening on the supply side.”
Edward Lawrence: “How do you respond to the criticism that will likely come that a deeper rate cut now before the election has some political motivations?”
Fed Chair Jerome Powell: “Yeah, so, you know, this is my fourth presidential election at the — at the Fed, and, you know, it’s always the same, we’re always — we’re always going into this meeting in particular and asking what’s the right thing to do for the people we serve? And we do that and — and we make a decision as a group, and then we announce it and it — that’s always what it is. It’s never about anything else. Nothing else is discussed and I would also point out that the things that we do really affect economic conditions for the most part with a — with a lag. So, nonetheless, this is what we do. Our job is to support the economy on behalf of the American people and if we get it right, this will benefit the American people significantly, so this really concentrates the mind and, you know, it’s something we all take very, very seriously. We don’t put up any other filters. I think if you start doing that, I don’t know where you stop and so, we just don’t do that.”
Edward Lawrence: “So, we’ve heard some speculation that you may be going with the federal funds rate to 3.5, maybe under 4%. And there’s basically entire generation that has experienced zero or near zero federal funds rate and some think we’re headed in that direction again. What’s the likelihood that cheap money is now the norm?”
Fed Chair Jerome Powell: “So, this is a question — and you mean after we get through all of this. Great question that we can only speculate about. Most — intuitively, most — many people, anyway, would say we’re probably not going back to that era where there were trillions of dollars of sovereign bonds trading at negative rates — long-term bonds trading at negative rates and it looked like the neutral rate might even be negative. So — and people were issuing debt at negative rates. It seems that’s so far away now. My own sense is that we’re not going back to that, but, you know, honestly, we’re going to find out. But I — you know — it feels — it feels, to me, and — that the neutral rate is probably significantly higher than it was back then. How high is it? I just don’t think we know. It’s — again, we only know it by its works.”
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Fed Chair: influx of migrants RAISED unemployment rate, criticism deeper rate cut political motivations?