NEW FED STIMULUS WARNING | FREE MONEY + INFINITE SPENDING

Jerome Powell – Chairman of The Federal Reserve – just announced his thoughts on the economy, the stimulus package and the outlook moving forward – enjoy! Add me on Instagram: GPStephan

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For anyone not aware, The Federal reserve is the almighty power that influences some MAJOR aspects of our economy:

-First, they monitor and manage the inflation of our currency
-Second, the Federal Reserve also regulates banking activities, and ensures that they operate within a strict set of guidelines.
-Third, they’ll provide banking services and other policies to ensure financial stability within the markets.

The Federal Reserve Chairman, Jerome Powell, said that interest rates will remain UNCHANGED, near ZERO, and will employ its “full range of tools” to support the US economy as the illness continues to wreak havoc on the US.
https://www.cnn.com/2020/04/29/economy/federal-reserve-april-meeting/index.html

They also said that they’ll “keeping buying Treasury and mortgage bonds to help keep rates low and ensure that companies can continue to lend easily.”
https://www.1011now.com/content/news/Fed-signals-it-will-likely-hold-interest-rates-near-zero-for-months-570047581.html

In other words…all that means is this: The Federal Reserve has made it clear that they will do EVERYTHING they can to make sure our economy doesn’t completely fall apart, and they’ll ensure that things won’t get too bad. After all, at least in the short term – it would be a LOT more devastating if people didn’t have any money, they were shut down, they weren’t working, they lost their house, banks stopped lending, businesses couldn’t stay open, and that – in turn – causes a massive spiral downwards.

And given that, though…it does bring up the eventual concern about INFLATION or DEFLATION – because, if so much money is pouring into our economy all at once, while people are losing jobs, EVENTUALLY…that money has to come from somewhere, right?

Now, even though this concern was addressed by a reporter during their press release, and Jerome Powell responded by saying that they’re closely monitoring the situation and will aim to do everything in their power to maintain a steady 2% inflation rate…EVENTUALLY, in my own opinion as some guy on the internet…something has to change.

Until then, I’d say DEFLATION is likely going to be the biggest concern – my video here: https://youtu.be/GRcRmmqByjc

During the press release, it was also brought up that The Federal Reserve is essentially “propping up the stock market” with these fiscal policies…and to that, Jerome Powell responded by saying that (Paraphrased) “That’s not the main concern, and right now – it’s more important to make sure businesses are able to stay afloat and keep people employed, than worry about the stock market becoming disconnected by reality.”

Only time will tell how this plays out…but, they’ve made it very apparent that their number one concern is: make sure everything is okay, FIRST…and then, once all of this blows over…we can address potential inflation, paying down the debt, and picking up the pieces…LATER.

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