NOW he tells us: Jerome Powell admits his rate hikes could NEVER fix home prices . . .

Photo above - 21s century urban homesteader reacts to Jerome Powell's admission that there is a housing supply problem, and jacking up interest rates didn't help.

Yesterday was a day of days. Not only did Federal Reserve Chairman Jerome Powell finally cut rates – after 9 months of fan dancing – he also made a stunning admission. High Interest rates weren’t intended to fight home inflation, and in fact can’t ever do that. See link below.

Loyal readers will recall that this writer has been saying THE EXACT SAME THING since the Fed began relentlessly hiking rates more than a year ago. To the highest level in 15 years. I have posted DOZENS of times that lack of affordable housing is a supply issue, not an interest rate problem. Yesterday Powell agreed. Has he been reading these columns?

I retract my snark. Powell has been told about this housing supply problem for a year. But NOW he reduces interest rates. Just in time for the election. Hmmmm . . . no, it CANT be that simple. Hey, is there a law against trying to rig an election by manipulating monetary policy, which ends up making things worse, instead of better? And knowing that would happen all along?

Here's a list of other things high interest rates makes worse:

- Automobile prices – both battery and gasoline

- Energy prices – oil and electricity (new electric plants don’t get started if loan costs are sky high)

- The price of a McDonalds value meal.

Want more? I can do this all day. The ONLY thing high interest rates can do is STOP factories, offices and homes from being built. Bridge repairs. Schools. And rates apparently have zero effect – one way or another – on the 800+ military bases we have around the world. Or how many Billion dollar B-2/21 bombers we buy, or how many aircraft carrier task forces we deploy, and how many telescopes and satellites we launch into orbit. When you look at the $35 Trillion national debt, that’s where a lot of it went. And the interest on it.

Jerome Powell is apparently immune from being fired. Or a recall vote. Or impeachment. Misleading the public and manipulating presidential elections doesn’t fall into the “high crimes and misdemeanors” classification.

The sad part is that none of this interest rate BS was needed. The consensus of pollsters is that Kamala is so far ahead that she would need to accuse Texans of eating chihuahuas to lose this election. So this whole farce is evidently to try and seize control of the Senate and House too.

I’m just sayin’ . . .

Jerome Powell: High home prices aren't something the Fed can fix (cnbc.com)