The Federal Reserve Bank of New York (FRBNY) is issuing a statement of its policy, “Fed Downplays Yield Curve Control, USD Bounce, But for How Long?” This does not sound good at all.
One of the main issues with the recent rise in the US dollar is that there was so much money that was being printed in large amounts that the amount of economic activity was not sustainable. The Federal Reserve had to begin taking action to try and stop this inflation in motion. As a result of the increase in supply there are now a higher price for all goods and services as well as the value of the currency itself.
So this should give all people hope that the inflation will stop sooner than later. One can only imagine how high the inflation will reach once the US dollar gets out of balance again. There has been some talk about an outright depression.
This does not bode well for the United States economy or the American dollar because the US dollar has now lost its purchasing power. The Federal Reserve wants to avoid this type of situation if it can. This is why it is making these comments on the matter, “Fed Downplays Yield Curve Control, USD Bounce, But for How Long?”
If you are not familiar with this statement, then you should understand that the Federal Reserve is signaling that they are concerned about the possibility of hyperinflation in the future. In other words, if things continue to go on the way they have been going on then there is a real threat of a breakdown of the US economy. The Fed is also worried about the effect this would have on our international reputation as well.
What you have to understand is that there is no such thing as a quick fix to an upswing in the economy. The problem is that we will be unable to get it back to where it should be. If we want the US economy to recover, it needs to work on its own accord and with some outside help.
We have been doing this on our own for quite a while, and we know how to do so without outside of government intervention. But the US citizens have not been able to overcome their problems on their own.
It appears as if the only way out for us to get ourselves out of this mess is to have the Federal Reserve take over our currency and use their monetary policy to bring it back in line. Please consider this in 2020.
At the same time, the US government will also be looking at ways to increase the Federal Reserve’s balance sheet and reduce our debt burden. The government’s main goal here will be to keep the economy afloat and to prevent the US dollar from heading back into recession.
So, at the present moment there is a good deal of interest being shown by the Federal Reserve on the possibility of a US dollar rebound because of the actions that have been taken recently. In short, the Federal Reserve is saying that they are concerned about the risks to their balance sheet, and the possible implications on the value of the US dollar.
The bottom line is that this kind of rhetoric is what the Fed uses when they say, “Downplays Yield Curve Control, US Dollar Bounce, But for How Long?” Now then, what is going to happen if the Fed’s actions do not work?
I believe that it will be the end of the US dollar as we know it. And, I am not a financial expert, but I do know how to read financial statements.