address the runaway spending here in washington to allow inflation to come down so families can afford the things that they need.l this omnibus billha has added to the tab and so there will be2 3.a lot to fix in 2023. i the fed cannot necessarily do it alone. senator elect ted budd made add very m good point about what is happening here. demand is a good thing for thefe country. we have not fixed the underlying problems that will help with inflation. one is the energy crisis. also the supply chain issues as well. when i look at these numbers and how they have trended, i do not see inflation moving that much lower until some of the underlying issues are solved.ed i aibm afraid that that is incredibly accurate.y th what we saw was administration push a story that inflation was temporarily in transitory. the reason is because there isst
inflation is just going to i know it s not temporary, but it s worldwide. let s be clear about it. yes. it s worldwide and much higher in some other developing nations than in the u.s. at the moment. exactly. and we should understand that, because as simply by raising interest rates and the united states, it s not clear we are going to bring down inflation quicker than inflation would be brought down anyway, as we move out of the pandemic, and as supply problems, worldwide, worldwide supply problems where actually are overcome. now, again, i don t have any magic wand here, but it seems to me that one of the problems we re not dealing with, is that american companies have a very high profit margins right now. in fact, almost record high profit margins. they are raising prices because they ve got pricing power, and there are a lot of monopolies, or near monopolies across this country. and that s something the fed cannot do anything about.
feel the problems in the economy, they will also feel the fed s response as the fed tries to slow down the economy and avoid even worse problems. and you heard from mohamed el-erian, a well respected economist. and people like him have been saying, you know, look, they are too late. now they are starting to raise interest rates into an already slowing economy. and they are kind of behind the curve here. what kind of challenge does that bring for fed policymakers who are trying to rein in inflation at a time where we re already seeing the economy start to cool off from last year s very strong pace? the challenge is that the fed cannot slow the economy with the kind of precision that would be ideal. the fed has this very broad based tool which is interest rates and they can raise or lower them depending on what they are seeing in the economy but they can t pinpoint a super specific target or super super specific pocket of the economy that needs to slow. and so we have this risk of an
to management. you have mentioned that got into the independent - that got into the independent investigation that got into the independent investigation files. that got into the independent investigation files. where - that got into the independent investigation files. where is i that got into the independent. investigation files. where is that document? investigation files. where is that document? itilte investigation files. where is that document? investigation files. where is that document? ~ ., . investigation files. where is that document? ., . ., document? we cannot find it. we have done very rigorous document? we cannot find it. we have done very rigorous searching document? we cannot find it. we have done very rigorous searching for- document? we cannot find it. we have done very rigorous searching for the i done very rigorous searching for the handwritten note. after 25 years, we cannot find it. handwritten note. after 25 years, we cannot find it cannot find it.
maybe the ecp is lowering their rates. but we can grow at 3% instead of 2%. is the u.s. economy slowing today? well, we went from 3% in q1 to 2% in q2. so it is. but the reason why it slowed based on my read of the data is it s pure federal reserve raising rates too fast. the fed cannot be raising rates when every central bank in the rest of the world is lowering their rates. that only leads to a widespread between interest rates between us and them and this thing called a carry trade where you borrow euros and buy dollars and a small handful of rich people make money and hurt manufacturers. will u.s. and chinese trade negotiators be back at the table next month? everything is on schedule. i think this is why it s important for people to not get