US economy returned to growth last quarter, expanding 2.6%

Re:US economy returned to growth last quarter, expanding 2.6% by importantbrian on Thursday October 27, 2022 @12:15PM (#33359796)

Did the fed actually say this? There were a bunch of investment bankers who did, and it seems like everyone else ran with the narrative. I haven't seen that the fed actually said it. I think all the fed cares about is bringing down inflation, but if the primary factors in inflation are supply related then unemployment doesn't have to go up for inflation to come down.

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Re:US economy returned to growth last quarter, expanding 2.6% by JumpCrisscross on Thursday October 27, 2022 @12:20PM (#33359893)

> Did the fed actually say this?

No [1].

[1] https://www.federalreserve.gov/newsevents/pressreleases/mone...

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Re:US economy returned to growth last quarter, expanding 2.6% by mostly_harmless on Thursday October 27, 2022 @12:25PM (#33359983)

Yes, but not directly. If you listen to the last FOMC meeting, Powell mentions there will likely be significant weakening of the labor market and a rise of unemployment. As well as his famous "there will be pain" remarks.

I don't think he directly said "he won't stop until" though.

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Re:US economy returned to growth last quarter, expanding 2.6% by importantbrian on Thursday October 27, 2022 @12:38PM (#33360197)

Yeah, I mean maintaining full employment is one of the fed's mandates. It would be an insane thing for a fed chair to just come out and say. I assume he want's to keep his job, and pissing off the Senate isn't the way to go about that.

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Re:US economy returned to growth last quarter, expanding 2.6% by Aunche on Thursday October 27, 2022 @12:52PM (#33360450)

Unlike smooth talking politicians, the Federal Reserve actually tries to be honest about the effects of their policies. This is something that should be applauded, not exploited as a means to get political capital.

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Re:US economy returned to growth last quarter, expanding 2.6% by aschearer on Thursday October 27, 2022 @02:21PM (#33361750)

I'm not sure why you think this is true. For month's Powell has been shifting the narrative. First it was under control, then it was a soft landing, now it's going to be a rough landing. What'll it be tomorrow?

I don't think they're being dishonest. I think they're constrained in how forthright they can be, lest they trigger a market reaction.

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Re:US economy returned to growth last quarter, expanding 2.6% by Aunche on Thursday October 27, 2022 @03:33PM (#33362835)

> I think they're constrained in how forthright they can be, lest they trigger a market reaction.

This is why I said that they try to be honest. Doctors are also inclined to err on the side of optimism when they are uncertain. The difference is that nobody is making conspiracy theories about doctors actually wanting to make their patients sick.

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Re:US economy returned to growth last quarter, expanding 2.6% by aschearer on Thursday October 27, 2022 @10:39PM (#33366927)

Tell that to Fauci.

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Re:US economy returned to growth last quarter, expanding 2.6% by yieldcrv on Thursday October 27, 2022 @12:21PM (#33359901)

Jerome Powell said this several times to Congress.

You’ll be able to find it, I believe in you.

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Re:US economy returned to growth last quarter, expanding 2.6% by JumpCrisscross on Thursday October 27, 2022 @12:24PM (#33359967)

> Jerome Powell said this several times to Congress

No, he didn’t [1]. The Fed’s statements to Congress are tightly scripted, in part so professionals can pick the meat from such popular nonsense.

[1] https://www.federalreserve.gov/newsevents/testimony/powell20...

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Re:US economy returned to growth last quarter, expanding 2.6% by yieldcrv on Thursday October 27, 2022 @02:15PM (#33361658)

tightly scripted to be vague

https://www.bloomberg.com/news/articles/2022-09-21/powell-si...

> Powell told reporters several times that a softer labor market may be necessary to sufficiently bring down demand.

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