Jerome Powell Stole Your Savings

If you were fortunate enough to have a job where you earned more than you spent, you probably decided to save some money. Saving money is so important for financial stability, but it is something that happens less and less in the US.

At that rate, your $100 can now only buy $85 worth of goods. This is the equivalent of someone walking into your bank and stealing $15 for every $100 saved. If you had $100,000, someone stole $15,000. If that happened in your house, you would call the police.

I’m framing this as being stolen from you because inflation doesn’t come out of nowhere. In fact, the Federal Reserve plans every year to steal 2% of your money and Jerome Powell is in charge of maintaining the stability of the dollar and your purchasing power.

Why was he reappointed? Great question. Joe Biden can answer that. Why was he reconfirmed? Great question. The 80 Senate members that voted for him can answer that.

Upon realizing that inflation was no longer “transitory” in November of 2021, Powell hardly changed policy. He left the Federal Funds Rate unchanged at 0 to .25% and reduced purchases of securities by $30 billion. Notice that purchases were reduced. He was still buying securities at a rate of $60 billion per month. This was still some of the most accommodative monetary policy in history.

Let’s be fair. Jerome Powell does not hold all the responsibility for this massive theft. The same politicians that voted him back in passed legislation that injected $5.3 trillion into the economy since the start of the Covid-19 outbreak.

There wasn‘t one instance after one of those bills was passed that Jerome Powell, as the leader of price stability, stood up and stated the risks of this spending combined with ultra-accommodative monetary policy. When the $1.9 billion American Rescue Plan was enacted in March of 2021, Powell responded by continuing to save America by buying securities at a $120 billion clip per month.

And here we are. Victims of the biggest heist in the history of the world. You will be told that Covid, supply chains, and Putin were the culprit. When will we get a leader that steps up and takes accountability for their missteps?

When inflation cools and returns to that 2% (theft-rate) benchmark, Powell will take credit, using all of his tools to get it under control. At that point, he will have stolen way more than 15% of your money. The lower class will never get back their spending power. You will live a lower quality life and future generations will be presented with a crushing bill for that privilege.

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