Atlanta Fed Chief: U.S. Economy Needs To Feel Pain Of Recession Now To ‘Avoid Deep, Deep Pain’ Later | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is John Rigolizzo.

    Atlanta Federal Reserve Bank President and CEO Raphael Bostic said Sunday that the country needs economic pain now to avoid even more pain later.

    Appearing on CBS's "Face The Nation," Bostic said that in order to rein in sky-high inflation, the Federal Reserve needs to rein in economic demand. To do that, it needs to tighten monetary policy, which he acknowledged would inevitably slow the economy down further. But he said dragging the economy down will mean job losses and economic pain, and that pain is necessary to avoid worse pain later on.

    "[I]nflation is high. It's too high," Bostic told host Margaret Brennan. "And we really need to do all that we can to make it come down. And when we think about its source, it's because we have very high demand."

    "We have not enough supply," he continued. "[W]hat we were hoping would happen is that we'd see some movement on the supply side, to move the supply up so that there wasn't so much of an auction on goods that are in the marketplace. But that hasn't happened. And that really has meant that we have had to turn to our policies to try to take demand down."

    Bostic dismissed concerns that the U.S. is already in a recession after two consecutive quarters of negative GDP growth, and claimed that the economy was "still creating lots of jobs on a monthly basis."

    He said the economy still has to slow down, "[b]ut I do think that we're going to do all that we can at the Federal Reserve to avoid deep, deep pain. And I think there are some scenarios where that's likely to happen."

    "It's not going to be easy," Bostic continued. "There will likely be some job losses. But I think if you look over the historical history here and our economic experiences, there's a really good chance that if we have job losses, it's going to be smaller than what we've seen in other situations. And that's what I'm banking on."

    Bostic's comments come as the Federal Reserve increased interest rates by another 75 basis points, or 0.75%, last week. The news sent the stock market tumbling on Wednesday; the Dow Jones Industrial Average closed below 30,000 on Friday, plunging to the lowest level since 2020 and sitting on the edge of bear market territory. Moreover, the Atlanta Fed projected the economy would stagnate in the third quarter; the Bank's GDPNow tracker predicts just 0.3% annualized GDP growth in the third quarter of 2022.

poll#154

Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?

  Yes, the Democrats have a bold plan, yet to be revealed, to save us.

  No, there will have to be a complete undoing of the damage done by these Democrats.

  I can't do simple math, so how am I to understand the concept of basic economics.

1,216 total vote(s)     What's your Opinion?

poll#162

In what may be the most divisive period in modern American History, even more divisive than the turbulent sixties due to today's lack of patriotism, consider what are the major catalysts causing so much of this calamity of conflict, and vote: What most instigates the division of America, on this day September 20, 2022?

  Racism within our society

  Sex realignment to the detriment of our society.

  Biden /Harris Wide Open Southern Border Policy for the Demographic Upheaval of OUR Constitutional Republic

  Rampant Crime in Democratic controlled cities, and the possible contagion elsewhere

  Covid Pandemic, and its mishandling at the political, and bureaucratic levels.

  The unresolved questions /allegation regarding the flawed 2020 General Election

  January 6th Riot or "Armed Insurrection", depending upon patriotic perspective

  Joe Biden as Divisive Leader; Ineffective and Corrupt Executive

  Failed Education Industry, from an overall perspective, regarding all levels of education.

  Propagandistic Media in complete conflict with the First Amendment's guarantee of Freedom of Speech, and the awesome responsibility of a Free Press..

  "Orangeman Bad!"

  Bureaucracy rushing to a behemoth size, its unjustified expense, and far too often overreach.

  The Weaponized Deep State for political purposes

  A secular ambivalence to all that is real.

  Record number of overdose deaths from opioids and now Fentanyl

  Biden Administration's disastrous Foreign Policy

  Bidenflation /supply chain failure inevitably evolving into stagflation and recession.

  "Ultra MAGA Extremists" freely speaking louder AND LOUDER!

927 total vote(s)     What's your Opinion?