Excessive monetary policy communications may undermine the Fed

The Federal Reserve can’t keep things stable all by itself.

Contrary to earlier predictions, the September 19–20 Federal Open Market Committee (FOMC) meeting is becoming into a snooze fest. The FOMC’s decision to hold rates constant in September is highly anticipated by the market. The Soft-Landing faction has benefited from relatively low inflation and labor market data, which is clearly making FOMC members happy. The viewpoint of the market has been orally affirmed by committee speakers.

Excessive monetary policy communications may undermine the Fed
OMFIF

The FOMC is having trouble communicating in September, though. In the near future, the market anticipates no change in federal funds rates. The FOMC would appreciate the most recent statistics and might decide against indicating another raise without receiving sufficient justification or preventing a protracted delay in market expectations.

That work will be made easier by the August U.S. inflation figures, which is predicted to be slightly lower. Given that the average 2023 FFR in June was higher than 5.5%, the dot plot will be the main focus, with a special emphasis on 2023 growth predictions.

However, the Federal Reserve is facing a more significant, long-term communication issue. The Fed receives a lot of attention from the public, and a single monetary policy can engender animosity. The Fed and the larger economic community share a large amount of accountability.

The Fed needs to be more forthright about the fact that it cannot carry out stabilization efforts on its own and how the American policy mix influences monetary policy. If not, America’s inept and irresponsible political class may eventually threaten its independence.

Jerome Powell, the chairman of the Federal Reserve, has frequently declared during press conferences that “the Federal Reserve is responsible for maintaining price stability.” Price stability is one of the two pillars of the Fed’s mandate, thus it is unquestionably true. Hyperbole, however, might exacerbate the notion that the Fed is alone in charge of and capable of managing price stability.

The Outside the Fed’s Control Factors

Recent years have unequivocally shown that supply shocks and outside variables have a big impact on prices. The dynamics of countries that export oil, supply chains, shifts in the relative costs of goods and services, interruptions, technical advancements, pandemics, shutdowns, and China’s development are a few of these.

Price movements and overall economic performance are heavily dependent on monetary and structural policies. Monetary policy is affected by unstable fiscal impulses. These all fall outside of the Fed’s purview.

The Fed should be in charge of regulating general demand to meet supply and hitting its inflation target, according to some. However, speaking the truth is often easier than living it, especially in light of delays, uncertainty, and the Fed’s lack of a crystal ball.

Continuous narratives in pre-FOMC speeches by Fed governors and regional bank presidents increase the emphasis on monetary policy. They continue to place monetary policy at the forefront of the majority of economic reporting, thereby giving the public the false impression that a change of 25 basis points up or down has a Goldilocks influence on the economy and the trajectory of inflation.

In conclusion, monetary policy coverage has an impact on how economic and financial policies are communicated, leading to inflated expectations of what the Fed can deliver and ultimately putting both America and the Fed in jeopardy.

The Last Chance to Save Fed Independence

Even if Donald Trump significantly broke the gracious tradition established by the administrations of George W. Bush, Barack Obama, and Joe Biden to refrain from criticizing the Federal Reserve, a polarized political system can look for a scapegoat rather than take responsibility for its failed policies. Given the Fed’s present course, America’s enormous fiscal stimulus, long-term budget deficits, and major economic headwinds, it might put pressure on the Fed to maintain low interest rates.

Such occurrences can undermine the efficacy of monetary policy, which serves as a flexible tool for the independence and stability of the Federal Reserve. If Congress and/or the executive branch interfere with monetary policy, as they have in previous decades, it would be extremely harmful to America.

American economic policy debates must be in-depth if the Fed is to succeed. Along with subtly communicating monetary policy, Fed officials need to communicate with the public more forcefully and openly on how other policies affect the dual goals of monetary policy. The accomplishment of monetary policy objectives may be influenced by these influences.

If America adopts a more balanced blend of economic policies and realistically assesses the variables that can jeopardize the fulfillment of monetary policy objectives, it may be advantageous. However, this may make Fed officials uncomfortable because it takes them farther outside of their recognized sphere. The Fed and the larger American economic community may benefit from this.

The Fed should talk about the effects of other measures on its stated objectives in addition to improving the communication of monetary policy. If America adopts a more balanced mix of economic policies and takes a realistic perspective of the dynamics that can obstruct the fulfillment of monetary policy goals, this could potentially push Fed members beyond their perceived comfort zone in terms of their scope. Both the Fed and the larger American economy might gain from this.

The Fed cannot handle it by itself.

Kraft recalling American cheese slices due to possible choking hazard

Due to a potential choking hazard, the food giant Kraft Heinz has voluntarily recalled about 84,000 pieces of processed American cheese.

According to a statement from Kraft Heinz, “We have initiated this voluntary recall as a precautionary measure after experiencing a temporary issue with one of our packaging machines, which may result in the possibility of leaving a thin strip of film on a single slice after the wrapper is removed.

Kraft recalling American cheese slices due to possible choking hazard
Kraft

If the film adheres to the slice, this could turn unpleasant and possibly present a choking or swallowing risk.

Kraft recalling American cheese slices due to possible choking hazard
Kraft

This voluntary recall has not affected any other Kraft products.

The problem was discovered after Kraft Heinz received numerous consumer complaints claiming to have discovered a “piece of plastic attached” in their cheese slices. According to Kraft’s statement, there were six complaints about this problem, and customers complained that it had made them uncomfortable or given them the impression that their throat was blocked.

There have been no reports of significant illnesses or injuries.

In order to prevent contamination from happening again, Kraft Heinz verified that they have subsequently fixed the machine in charge of wrapping the impacted slices and thoroughly inspected all other processing equipment.

Please take note that the recall only applies to slices of Kraft Singles American Processed Cheese with the following case/package information. The recall does not cover any other models or sizes.

The apologies from Kraft read, “Kraft Heinz is committed to upholding the highest safety and quality standards and apologizes for this inconvenience.”

Additionally, Kraft recommended customers who had purchased these goods to return them to the store where they were acquired for an exchange or refund rather than eating them.

Customers can also get in touch with Kraft Heinz directly to see if a product is included in the recall and to arrange for a replacement by contacting 1-800-280-8252 from Monday through Friday from 9 AM to 6 PM.

Would you buy a haunted house? The true dark story behind a ‘haunted’ mansion for sale

The purchaser of this 12,000 square foot estate will get a huge portion of Oklahoma’s past. Will they receive more than just a real estate deal, though?

The Seminole Nation of Oklahoma has relisted the Grisso Mansion in Seminole, Oklahoma, on the market for $1.8 million. Some claim that the mansion, which was built by a local oil billionaire in 1926, has a haunting past, adding to its mystique.

Would you buy a haunted house? The true dark story behind a 'haunted' mansion for sale
USA TODAY

This completely furnished, 4-bedroom, 6-bathroom estate spans over 11 acres. A vineyard, a 1,600-square-foot garage, an in-ground pool, a pool house, gazebos, fountains, sculptures, a courtyard, tennis and basketball courts, lily and koi ponds, and an arboretum are among the features of the property.

The residence can be found in Seminole, Oklahoma, at 612 E. Wrangler Boulevard. Photos and a $1,800,000 price tag are provided.

Here, there is also a guest quarter with two bedrooms, two bathrooms, and two restrooms that was formerly used for servants.

Who then was responsible for the Grisso Mansion’s building in Seminole?

The Oklahoman claims that “Doctor” Grisso, also known as William Edward Grisso, arrived in Oklahoma in 1904 to work as a doctor at the Seminole Indian Mission.

The property is located at 612 East Wrangler Boulevard in Seminole, Oklahoma, and it has a $1,800,000 price tag. Pictures are offered.

In the end, he quit school before earning his medical degree, and he was appointed the town’s pharmacist.

According to the legend, Grisso started buying mineral rights from tribe members and other people, and after oil was discovered in Seminole, he rose to become one of the county’s richest people. For his wife, Margaret “Maggie” Grisso, he erected this palace.

The mansion and its surrounding property were bought by the Seminole Nation of Oklahoma in 2012, who use it for weddings and other occasions. The Tribal General Council agreed to cease operations and subsequently opted to sell the site in 2019, according to Assistant Chief Bryan Palmer.

Is Grisso Mansion eerily alive? The Seminole Nation asserts that Grisso’s road to fortune was secret and dishonorable, and there are rumors that the Grisso Mansion is a site where strange things happen.

Palmer claimed that Grisso shared a practice with other tribes during the Oklahoma oil boom in which he acquired the majority of his mineral rights through “opaque deals” with Seminole tribal members.

Palmer claimed that this also involved a Seminole woman that Grisso had married, and via her, when she went away not long after their marriage, he received a sizeable amount of land and mineral wealth.

“There were a lot of suspicious dealings,” Palmer said, “where either someone was marrying into the tribe, or a judge was detaining someone as a minor, making them a ward, and was, in a mandatory way, able to steal their mineral rights.”

According to Palmer, “The Seminole Nation was originally one of the poorest, if not the poorest, economically disadvantaged tribes in Oklahoma.” “Despite having one of the largest oil-producing regions in the world, it was largely stolen,”

One account of paranormal activity, according to the Native American Paranormal Project, is “seeing a woman who could be described as Maggie Grisso wandering the halls.”

This had to do with a documentary that was shot in the house in 2013 and sought to present the tribe’s viewpoint on the oil boom. Quite the tale.

Would you purchase a spooky home? Do you reside there?

One in four Americans, according to a recent study by Rocket Homes that polled over 1,000 Americans, had personal ghost stories. In addition, the survey found that 16.5% of Americans are unsure about whether ghosts exist and that 27.7% do not believe in them. When questioned about their prior experience with haunted houses:

  • About 75 percent of adults in the study said they have lived in a haunted house.
  • The survey’s sample of Americans found that one in three said they would be interested in purchasing a haunted house.
  • In the survey, 21% of adults said they would try to sell their newly purchased home if they learned it was haunted.