Look Out Below! Powell’s Delusion WILL Crash Stocks

Fed Chair Powell and the rest of the Federal Reserve is delusional and it WILL cause another stock market crash in 2023. I'll explain in this week's stock market update. Watch this next for the nine stocks that could SAVE your life! https://youtu.be/p2fxeH-o68U

As bad as the 2022 stock market was, we could be in for yet more pain in 2023 because of how delusional Chair Powell and the Fed is about what is happening.

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Last year the delusion was that inflation was only ‘transitory’ and wouldn’t be a problem. Then consumer prices surged 9% and the Fed was caught off-guard. Even with inflation coming down over the last few months, it’s been a long way from ‘transitory’.

Now Powell and colleagues are delusional about their own forecasts, the record-breaking speed of interest rate hikes and what it’s doing to the economy. Last year, the Fed told the markets it expected to raise rates less than a percent this year. Instead, as of Wednesday, it’s raised interest rates by more than 4%...the fastest pace in more than 40 years.

It’s in the Fed’s updated projections, released Wednesday, that we see the real insanity. For the overall economy, the Fed projects growth in GDP to slow to just 0.5% next year. The problem is, the Fed also expects unemployment to jump from 3.7% to 4.6% by the end of the year as high interest rates slow down growth. On the Fed’s own projection, that would mean an additional 1.6 million Americans out of work.

Asked during the press conference, Powell said of the expectations, “I don’t think it would qualify as a recession because you’ve got positive growth. Of course Wall Street was quick to call bullshit on Powell’s optimism. Ryan Sweet of Oxford Economics pointed out that the level of expected increase in unemployment has never happened without the economy falling into a recession.

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
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