Even Democrats Are Terrified About What Biden Might Do Next

Despite rocketing inflation and warning bells being sounded by economists, the Federal Open Market Committee, responsible for the execution and oversight of monetary policy, refuses to amend either their $120 billion per month asset purchases or their near-zero interest rate targets.

Democrat Senator Joe Manchin of West Virginia requested that the Federal Reserve taper its monetary stimulus, issuing a letter of argument to Federal Chairman Jerome Powell that the radical stimulus isn’t necessary anymore given the economic rebound that America is seeing.

Manchin says that he feels “increasingly alarmed” at the behavior of the government as they continue to pursue “emergency level[s] of quantitative easing.” He adds that the stimulus money pumped into the economy is a “record amount,” that has resulted in “inflation momentum” not seen in 30 years. Manchin argued that continuing down this path will result in an overheated economy that will saddle working-class Americans with “unavoidable inflation taxes.”

He says that he appreciates the government’s commitment to “maximum employment and stable prices,” but warns that the long term consequences of following policies “tailored for an economic depression” will cause today’s economy to realize undesired inflation if those policies are not ended in time.

Christopher Waller, a member of the Fed Board of Governors signaled on Tuesday that the central bank will start to taper this coming fall.

Waller spoke to CNBC in an interview and declared that the stimulus had done it’s job and could probably be scaled back in September, but said that the fall date was contingent on the results of the next pair of job reports.

He said that tapering should be done soon and quickly so that the central bank is positioned “to raise rates in 2022” should the need arise. He quickly pointed out that there is no plan to do so, but stressed the importance of having the option available.

Waller warned that he’s heard “anecdotal evidence” from business contacts that they were able to pass down higher prices to consumers, and said that “they fully intend to.” Waller lamented that issues such as these are a cause for concern that “this may not be transitory.”