Connect with us

Government

Watch Live: Powell Positions Himself As Populist Crusader In Senate Confirmation Hearing

Watch Live: Powell Positions Himself As Populist Crusader In Senate Confirmation Hearing

Jay Powell’s big day has finally arrived.

After being officially nominated for a second term at the Fed just before Thanksgiving, Fed Chairman Jerome.

Published

on

Watch Live: Powell Positions Himself As Populist Crusader In Senate Confirmation Hearing

Jay Powell's big day has finally arrived.

After being officially nominated for a second term at the Fed just before Thanksgiving, Fed Chairman Jerome Powell will appear before the Senate Banking Committee on Tuesday for his nomination hearing before the committee, then the entire Senate, vote on whether to officially confirm him to serve another 4 years at the central bank's helm, a decision that most see as preordained (since the Senate wouldn't dare defy markets, and risk tanking their own portfolios, by siding with Sen. Elizabeth Warren and voting against him).

In his prepared testimony, Powell once again tried to position himself as a populist by addressing the inflationary pressures that have arisen from the combination of Fed stimulus and the supernova of federal spending, and insisting that the Fed is running the economy for the benefit of all, rather than embracing policies that stoke asset inflation, further widening economic equality.

The Federal Reserve works for all Americans. We know our decisions matter to every person, family, business, and community across the country. I am committed to making those decisions with objectivity, integrity, and impartiality, based on the best available evidence, and in the long-standing tradition of monetary policy independence. That pledge lies at the heart of the Fed’s mission and is one we all make when we answer the call to public service. I make it here again, with force and without reservation.

Nowhere in his remarks does Powell touch upon his own responsibility for helping to create the inflationary supernova that's currently squeezing working and middle-class Americans - though he claims to be the man to fix it.

As for what we might hear from Powell on the subject of monetary policy, Ransquawk believes he might share an update on the Fed's thinking about the labor market following the disappointing headline number for December released on Friday. The chair will likely also be asked about the prospects for a March rate hike, which markets have already started to aggressively price in.

Powell also might  be asked about the latest ethics scandal at the Fed, which resulted in (former) Vice Chair Richard Clarida resigning two weeks shy of his retirement date after the press discovered in an amended ethics filing that Clarida had lied about buying stocks - via ETFs - just days before the Fed unveiled its stimulus measures in response to the March 2020 COVID-inspired market rout.

Readers can find Ransquawk's preview of Tuesday's hearing below:

The hearing will take place at 15:00GMT/10:00EST on Tuesday 11th January 2022. President Biden renominated Powell for the Fed Chair Position in November 2021. In the follow up remarks, Powell noted strong policy actions and vaccines have set the stage for a strong recovery, but he knows high inflation takes its toll on families and the economy. Powell also promised the return of maximum employment. In his prepared remarks for the hearing, he noted the economy is growing at its fastest pace in many years and the labour market is strong, highlighting the rapid strengthening of the economy despite the pandemic, resulting in elevated inflation.  Powell will likely get quizzed about hot inflation (note, US CPI is on Wednesday, after the hearing), but given the hawkish pivot in December (acceleration of asset purchases, discussion around the balance sheet, and hawkish dot plots), he will likely say the Fed is pivoting to address high inflation and will reiterate that maximum employment could be achieved relatively soon, providing job growth continues at the current pace.

Given the December meeting and press conference were so recent, and the Fed has only really had the latest jobs report to digest since then, we may see updated commentary on the labour market, although other remarks are likely to be a reiteration. However, given the recent increased attention around a March lift-off, remarks on this will be key, as will any further details on the balance sheet. In the Minutes, on lift off, some suggested there could be circumstances in which it would be appropriate for the Committee to raise rates before maximum employment had been fully achieved, several participants viewed labour market conditions as already largely consistent with maximum employment while most judged it could be met relatively soon if the recent pace of the labour market continues. The latest jobs report saw an even further hawkish shift in market pricing for the March meeting given a strong improvement in the unemployment rate and decent improvement in slack measures, while the miss on the headline NFP perhaps shows that there are less jobs to add in the COVID labour market, suggesting full employment is either here, or at least near, for the short-to-medium term. Nonetheless, Powell’s views on this will be in focus. For reference, the Fed currently forecasts three hikes in 2022; however, the likes of Goldman Sachs call for four and JP Morgan’s CEO Dimon said more than four hikes in 2022 were a possibility. On the matter, Bostic (2024 voter, hawk) sees three 2022 hikes with the risk of a fourth on the possibility of higher inflation.

The Fed officially dropped the term “transitory” from its December meeting, therefore this may be a topic of question at the hearing. However, Powell did note he still expects price pressures to ease in the second half of this year, along with supply chain issues, although there was still great uncertainty. The FOMC’s SEPs in December saw the median view of PCE easing from current levels to 2.6% in 2022 with the core at 2.7%, albeit both estimates are above the Fed’s prior estimate back in September. Looking ahead, both the headline and core PCE metrics are expected to slow further to 2.3% in 2023 and 2.1% in 2024, so the Fed still thinks the recent elevated inflation prints are temporary. On wages, Powell will likely reiterate there is no evidence of wage growth spiralling into inflation, but given the political nature of the hearing, and given inflation is one of congress’ largest concerns, he will have to convince the Senate Banking committee he will be acting to bring inflation down.

Fed-Vice Chair nominee Brainard will have her hearing at the Senate Banking Committee on Thursday January 13th at 15:00GMT/10:00EST, she tends to lean more dovish, but she hasn’t spoken much recently, therefore her comments will likely reiterate Powell today, but it will be interesting to see her views on the balance sheet and lift-off timings.

And here's Powell's full prepared testimony:

Tyler Durden Tue, 01/11/2022 - 09:55

Read More

Continue Reading

Spread & Containment

Easyjet share price down 3% as pandemic losses hit £2.2 billion

The EasyJet share price shed over 3% today to give up a chunk of…
The post Easyjet share price down 3% as pandemic losses hit £2.2 billion first appeared on Trading and Investment News.

Published

on

The EasyJet share price shed over 3% today to give up a chunk of the gains the budget airline had made earlier in the week. The new slide came after it announced a £213 loss for the last quarter of the year covering the Christmas period, taking losses for the Covid-19 pandemic period to £2.2 billion. The airline also told investors it is still burning through £150 million in cash every month as it struggles to build capacity back up.

The short-haul airline that makes most of its income shuttling holidaymakers and business travellers around Europe said it is still only operating at around half of its pre-pandemic capacity. However, it is hopeful that pent-up demand and an end to travel restrictions mean it will return to pre-pandemic levels by summer and enjoy much brisker trade than of late over the Easter and spring period.

easy jet plc

But before then the airline company will again have to absorb deep losses over the current quarter, which is traditionally its weakest of the year. Even a strong summer period, think most analysts, will be insufficient to see the company return to profit this year. EasyJet’s value is still less than half of what it was in February 2020 before the coronavirus-induced market sell-off that hit later that month and saw markets dive into March before starting to recover. The share prices of rival budget airlines Ryanair and WizzAir have recovered much more strongly in comparison to EasyJet’s and are now close to their pre-pandemic levels. There have been concerns around whether EasyJet could survive the pandemic but investors contributed £1.2 billion last autumn to bolster its balance sheet.

The EasyJet share price is closing the week at around £6.15 compared to over £15 before the pandemic. However, there is now hope the worst may be behind the airline and it can begin its, potentially long, journey back to health. Chief executive John Lundgren attempted to soften the announcement of another hefty loss with a bullish statement on where things go from here for his company:

“Booking volumes jumped in the UK following the welcome reduction of travel restrictions announced on January 5, which have been sustained and given a further boost from the UK government’s decision this week to remove all testing requirements.”

“We believe testing for travel across our network should soon become a thing of the past. We see a strong summer ahead, with pent-up demand that will see easyJet returning to near-2019 levels of capacity, with UK beach and leisure routes performing particularly well.”

For now, however, forward guidance for the immediate quarter remains cautious with the company admitting it has fallen short of its expectations to be at 80% capacity by this quarter, sitting at just 67%. However, with most analysts confident the company will eventually return to strength, and profit in the 2022-23 financial year, EasyJet shares could offer a good buying opportunity at current levels.

The post Easyjet share price down 3% as pandemic losses hit £2.2 billion first appeared on Trading and Investment News.

Read More

Continue Reading

Government

Xi Jinping Seeking “Global Domination”: Mike Pompeo

Xi Jinping Seeking "Global Domination": Mike Pompeo

Authored by Nathan Worcester via The Epoch Times,

Mike Pompeo said Chinese leader Xi Jinping wants “global domination—hegemony for the Chinese Communist Party,” warning that the…

Published

on

Xi Jinping Seeking "Global Domination": Mike Pompeo

Authored by Nathan Worcester via The Epoch Times,

Mike Pompeo said Chinese leader Xi Jinping wants “global domination—hegemony for the Chinese Communist Party,” warning that the rise of the Chinese Communist Party (CCP) could destroy the rules-based international order in place since the end of World War II.

“It’s not about putting a Chinese tank division in Taiwan. It’s about accreting political power and influence throughout the world,” Pompeo said.

Pompeo, who served first as CIA director and later as Secretary of State under President Donald Trump, made the statement in an appearance at the Argus Americas Crude Summit 2022.

He said his tenure as CIA director came at a time when U.S. attention had to shift from terrorism to other threats, foremost among them the CCP.

He added that a “global awakening” is taking place about what he sees as the ambitions of the CCP.

“Most of the credit goes to Xi Jinping. He foisted a virus on the world, for goodness’ sake, and refuses to let anybody go figure out where it came from,” Pompeo said.

The CCP has met with international criticism for blocking access to the Wuhan Institute of Virology (WIV) and related facilities in Wuhan by the United Nations. Many scientists and journalists suspect the CCP virus that causes COVID-19 originated at the WIV.

Pompeo also commented on ongoing trade-related conflict between the United States and China, raising questions about the United States’ initial decision to open up to China in the context of its primary Cold War conflict with China’s then-rival, the Soviet Union.

“The trade war began maybe in 1972,” he said, referring to Henry Kissinger and President Richard Nixon’s visit to the People’s Republic of China in the context of restoring diplomatic ties.

“Maybe it was the right thing to do in 1972—but the trade war long predates the Trump administration.”

“We encouraged business together. I don’t fault the businesses who went there. Notice the past tense of this. America’s policy encouraged connectivity with the Chinese Communist Party. Today, that is an enormous liability for the world, and Xi Jinping knows that,” Pompeo said.

Tyler Durden Fri, 01/28/2022 - 23:00

Read More

Continue Reading

Spread & Containment

Authoritarian Madness: The Slippery Slope From Lockdowns To Concentration Camps

Authoritarian Madness: The Slippery Slope From Lockdowns To Concentration Camps

Authored by John W. Whitehead & Nisha Whitehead via The Rutherford Institute,

“All the Dachaus must remain standing. The Dachaus, the Belsens, the Buchenwal

Published

on

Authoritarian Madness: The Slippery Slope From Lockdowns To Concentration Camps

Authored by John W. Whitehead & Nisha Whitehead via The Rutherford Institute,

“All the Dachaus must remain standing. The Dachaus, the Belsens, the Buchenwald, the Auschwitzes—all of them. They must remain standing because they are a monument to a moment in time when some men decided to turn the Earth into a graveyard. Into it they shoveled all of their reason, their logic, their knowledge, but worst of all, their conscience. And the moment we forget this, the moment we cease to be haunted by its remembrance, then we become the gravediggers.”

- Rod Serling, Deaths-Head Revisited

In the politically charged, polarizing tug-of-war that is the debate over COVID-19, we find ourselves buffeted by fear over a viral pandemic that continues to wreak havoc with lives and the economy, threats of vaccine mandates and financial penalties for noncompliance, and discord over how to legislate the public good without sacrificing individual liberty.

The discord is getting more discordant by the day.

Just recently, for instance, the Salt Lake Tribune Editorial Board suggested that government officials should mandate mass vaccinations and deploy the National Guard “to ensure that people without proof of vaccination would not be allowed, well, anywhere.”

In other words, lock up the unvaccinated and use the military to determine who gets to be “free.”

These tactics have been used before.

This is why significant numbers of people are worried: because this is the slippery slope that starts with well-meaning intentions for the greater good and ends with tyrannical abuses no one should tolerate.

For a glimpse at what the future might look like if such a policy were to be enforced, look beyond America’s borders.

In Italy, the unvaccinated are banned from restaurants, bars and public transportation, and could face suspensions from work and monthly fines. Similarly, France will ban the unvaccinated from most public venues.

In Austria, anyone who has not complied with the vaccine mandate could face fines up to $4100. Police will be authorized to carry out routine checks and demand proof of vaccination, with penalties of as much as $685 for failure to do so.

In China, which has adopted a zero tolerance, “zero COVID” strategy, whole cities—some with populations in the tens of millions—are being forced into home lockdowns for weeks on end, resulting in mass shortages of food and household supplies. Reports have surfaced of residents “trading cigarettes for cabbage, dishwashing liquid for apples and sanitary pads for a small pile of vegetables. One resident traded a Nintendo Switch console for a packet of instant noodles and two steamed buns.”

For those unfortunate enough to contract COVID-19, China has constructed “quarantine camps” throughout the country: massive complexes boasting thousands of small, metal boxes containing little more than a bed and a toilet. Detainees—including children, pregnant women and the elderly— were reportedly ordered to leave their homes in the middle of the night, transported to the quarantine camps in buses and held in isolation.

If this last scenario sounds chillingly familiar, it should.

Eighty years ago, another authoritarian regime established more than 44,000 quarantine camps for those perceived as “enemies of the state”: racially inferior, politically unacceptable or simply noncompliant.

While the majority of those imprisoned in the Nazi concentration camps, forced labor camps, incarceration sites and ghettos were Jews, there were also Polish nationals, gypsies, Russians, political dissidents, resistance fighters, Jehovah’s Witnesses, and homosexuals.

Culturally, we have become so fixated on the mass murders of Jewish prisoners by the Nazis that we overlook the fact that the purpose of these concentration camps were initially intended to “incarcerate and intimidate the leaders of political, social, and cultural movements that the Nazis perceived to be a threat to the survival of the regime.”

As the U.S. Holocaust Memorial Museum explains:

“Most prisoners in the early concentration camps were political prisoners—German Communists, Socialists, Social Democrats—as well as Roma (Gypsies), Jehovah's Witnesses, homosexuals, and persons accused of ‘asocial’ or socially deviant behavior. Many of these sites were called concentration camps. The term concentration camp refers to a camp in which people are detained or confined, usually under harsh conditions and without regard to legal norms of arrest and imprisonment that are acceptable in a constitutional democracy.”

How do you get from there to here, from Auschwitz concentration camps to COVID quarantine centers?

Connect the dots.

You don’t have to be unvaccinated or a conspiracy theorist or even anti-government to be worried about what lies ahead. You just have to recognize the truth in the warning: power corrupts, and absolute power corrupts absolutely.

This is not about COVID-19. Nor is it about politics, populist movements, or any particular country.

This is about what happens when good, generally decent people—distracted by manufactured crises, polarizing politics, and fighting that divides the populace into warring “us vs. them” camps—fail to take note of the looming danger that threatens to wipe freedom from the map and place us all in chains.

It’s about what happens when any government is empowered to adopt a comply-or-suffer-the-consequences mindset that is enforced through mandates, lockdowns, penalties, detention centers, martial law, and a disregard for the rights of the individual.

The slippery slope begins in just this way, with propaganda campaigns about the public good being more important than individual liberty, and it ends with lockdowns and concentration camps.

The danger signs are everywhere.

Claudio Ronco, a 66-year-old Orthodox Jew and a specialist in 18th-century music, recognizes the signs. Because of his decision to remain unvaccinated, Ronco is trapped inside his house, unable to move about in public without a digital vaccination card. He can no longer board a plane, check into a hotel, eat at a restaurant or get a coffee at a bar. He has been ostracized by friends, shut out of public life, and will soon face monthly fines for insisting on his right to bodily integrity and individual freedom.

For all intents and purposes, Ronco has become an undesirable in the eyes of the government, forced into isolation so he doesn’t risk contaminating the rest of the populace.

This is the slippery slope: a government empowered to restrict movements, limit individual liberty, and isolate “undesirables” to prevent the spread of a disease is a government that has the power to lockdown a country, label whole segments of the population a danger to national security, and force those undesirables—a.k.a. extremists, dissidents, troublemakers, etc.—into isolation so they don’t contaminate the rest of the populace.

The world has been down this road before, too.

Others have ignored the warning signs. We cannot afford to do so.

As historian Milton Mayer recounts in his seminal book on Hitler’s rise to power, They Thought They Were Free:

“Most of us did not want to think about fundamental things and never had. There was no need to. Nazism gave us some dreadful, fundamental things to think about—we were decent people‑—and kept us so busy with continuous changes and 'crises' and so fascinated, yes, fascinated, by the machinations of the 'national enemies', without and within, that we had no time to think about these dreadful things that were growing, little by little, all around us.”

The German people chose to ignore the truth and believe the lie.

They were not oblivious to the horrors taking place around them. As historian Robert Gellately points out, “[A]nyone in Nazi Germany who wanted to find out about the Gestapo, the concentration camps, and the campaigns of discrimination and persecutions need only read the newspapers.”

The warning signs were there, blinking incessantly like large neon signs.

“Still,” Gellately writes, “the vast majority voted in favor of Nazism, and in spite of what they could read in the press and hear by word of mouth about the secret police, the concentration camps, official anti-Semitism, and so on. . . . [T]here is no getting away from the fact that at that moment, ‘the vast majority of the German people backed him.’”

Half a century later, the wife of a prominent German historian, neither of whom were members of the Nazi party, opined: “[O]n the whole, everyone felt well. . . . And there were certainly eighty percent who lived productively and positively throughout the time. . . . We also had good years. We had wonderful years.”

In other words, as long as their creature comforts remained undiminished, as long as their bank accounts remained flush, as long as they weren’t being locked up, locked down, discriminated against, persecuted, starved, beaten, shot, stripped, jailed or killed, life was good.

Life is good in America, too, as long as you’re able to keep cocooning yourself in political fantasies that depict a world in which your party is always right and everyone else is wrong, while distracting yourself with bread-and-circus entertainment that bears no resemblance to reality.

Indeed, life in America may be good for the privileged few who aren’t being locked up, locked down, discriminated against, persecuted, starved, beaten, shot, stripped, jailed or killed, but it’s getting worse by the day for the rest of us.

Which brings me back to the present crisis: COVID-19 is not the Holocaust, and those who advocate vaccine mandates, lockdowns and quarantine camps are not Hitler, but this still has the makings of a slippery slope.

The means do not justify the ends: we must find other ways of fighting a pandemic without resorting to mandates and lockdowns and concentration camps. To do otherwise is to lay the groundwork for another authoritarian monster to rise up and wreak havoc.

If we do not want to repeat the past, then we must learn from past mistakes.

January 27 marks Remembrance Day, the anniversary of the liberation of Auschwitz-Birkenau, a day for remembering those who died at the hands of Hitler’s henchmen and those who survived the horrors of the Nazi concentration camps.

Yet remembering is not enough. We can do better. We must do better.

As I make clear in my book Battlefield America: The War on the American People and in its fictional counterpart The Erik Blair Diaries, the world is teetering on the edge of authoritarian madness.

All it will take is one solid push for tyranny to prevail.

Tyler Durden Fri, 01/28/2022 - 23:40

Read More

Continue Reading

Trending