Federal Reserve Powell to testify to congress today starting 10am. And why today is so important

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He’s going to say the following: * the Fed has lots of ammunition * they are prepared to print money forever to make more jobs * he will dodge any questions relating how exactly money was spent in their SPVs, and which companies got loans (he’ll say he doesn’t know, or some BS about privacy or being unable to disclose for some reason) * he will say that he does not expect to use negative interest rates, because he’s not convinced they even work * he will say there’s no “moral hazard” because the virus was a “black swan” event, so it’s okay to print money and give free money to bond holders and big companies * he will be grilled on why main street is not getting any help from the Fed, and he’ll provide a bunch of nothing burgers that essentially amount to saying “idk, don’t care tbh” You heard it here first.


I finished undergrad in 09 and this is eerily similar. You had the Fed doing what needed to be done to support credit function in the economy, Congress largely grandstanding during these meetings and ultimately understanding that the Fed was acting prudently, and a whole horde of uninformed masses that were convinced the currency would be debased or some other nonsensical bullshit. History really does repeat, I’d only hope today’s horde of uninformed masses at least pays attention over the next few years and is open to questioning their prior conclusions.


Oh my fucking God, no one knows what the Fed does in this thread. They do not have anything to do with fiscal policy! If you ever find yourself talking about wealth inequality when discussing the Fed, redirect your anger to those actually responsible: fiscal policymakers. This is an investing sub?


My favorite thing about /r/investing is how the new hottest meme is to act like stocks can only go up because of the Fed. I get that central bank policy is hard to understand. But we’re doing the “DAE THINK WERE IN A DEPRESSION BUT THE FED IS PUMPING THE MARKETS?” circlejerk five times a day now. As usual, reddit think continues to to be the ultimate inverse indicator. The more people here get hysterical about markets going up, the better things actually are. I’ll be worried when the doom porn lovers start capitulating.


Wall Street bets will be very excited