Jerome Powell is in trouble. 

In a recent issue of Bonner Private Research, Bill Bonner wrote about the problems facing Jerome Powell and the Federal Reserve:

“Inflation has already returned to levels not seen since the 1970s. The Fed needs to stop printing; everybody says so. But if Powell fights inflation, the economy will collapse; it depends on ultra-low interest rates and free-flowing credit. If, on the other hand, he lets inflation rip, the dollar will die… bringing with it financial, social, and political chaos…. In order to escape his trap, Jerome Powell needs to cut away 14 years’ worth of bad policy….

“The COVID Crisis caused the Fed to do a lot more of what it never should have been doing in the first place – printing money. In the last two years, its balance sheet… rose by more than it had in the entire 107 years since it was founded – by over $4 trillion.”

Bill foresees difficult times ahead. He suspects that Powell and the Fed will fail in trying to manage with the $50 trillion in fake wealth created since 2007. What they are dealing with, he says, is “a credit-addled economy, including trillion-dollar federal deficits, meme stocks, buyback programs, NFTs, zombie corporations, million-dollar shacks… and much, much more.”