Federal Reserve Chairman Jerome Powell is gambling money creation 💸 will create massive inflation for assets, but not price consumer expenditures! 👹
The Federal Reserve created 3.5T from 2008 to 2014.
+400% in 6 years
+66% per year
While in 2020 alone, the Federal Reserve created over 3T.
+73% in 1 year
Let pretend Federal Reserve creates 10T in 2020.
+243% in 1 year
👇🏽Yearly Changes of PCE chain index
Massive inflation did not occur in PCE and stayed below 2%, due to deflationary forces like cheap foreign labor and technology.
While asset prices significantly appreciated much higher than 2%.
If the United States brings back manufacturing or trade war intensifies with China, expect higher inflation of PCE to occur!
The Federal Reserve targets a 2% PCE inflation but ignores asset inflation. 🤔
You must own assets to be wealthy.