Powell Tells Senate He’s “Not Concerned” With Rising Cost Of Living

Powell has made some more eye-catching comments, the first concerning keeping the public focused on “risk management”.

*POWELL: NEED TO KEEP PEOPLE FOCUSED ON RISK MANAGEMENT

First, the Fed blows the biggest bubble in history, then it tells traders to manage their risk

Also, which Fed mandate is this?

— zerohedge (@zerohedge) July 15, 2021

Speaking once again on cryptocurrencies, Powell insisted that they have “failed” as a payment system, a factor of their volatile prices and heft transaction fees.

As his testimony comes to an end, Powell denied that prices are moving up broadly across the economy. Should inflation expectations get out of control, the Fed will “react”, Powell promised (without offering much in the way of detail).

*POWELL: IF INF. EXPECTATIONS MOVING TOO FAR UP, WE'LL REACT

… by excluding all the prices that go up from PCE

— zerohedge (@zerohedge) July 15, 2021

Earlier, Powell said he’s not concerned about the rising cost of living in the US as the most intense price pressures have been confined to only a handful of areas (like used cars, for example).  He added that he would only become concerned about inflation once large price increases have grown more widespread. But as Peter Schiff pointed out in a tweet, by then, it’s already too late.

Powell said that he's not concerned about the rising cost of living as it's only a handful of items related to the economy reopening where prices are surging. He said he'll only become concerned about #inflation once large price increases become widespread. By then it's too late.

— Peter Schiff (@PeterSchiff) July 15, 2021