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Did the Fed Wait Too Long on Inflation?

June 01, 2026 / 00:40

This episode discusses the significant increase in the money supply, the implications of Chair Powell's decisions, and the concept of transitory inflation.

The conversation highlights the unprecedented growth in the money supply over a two-year period, which was the largest in 150 years. The guest expresses concern over the Federal Reserve's approach to inflation and the potential long-term effects.

Specific discussions include the mistakes made by the Federal Reserve in labeling inflation as transitory and the historical context of such decisions. The guest reflects on their early warnings about the inflation trends observed shortly after the COVID-19 pandemic began.

Overall, the episode emphasizes the importance of learning from past mistakes in economic policy and the challenges faced by policymakers in addressing inflation.

TLDR

The episode critiques Chair Powell's handling of inflation and the historical context of monetary policy mistakes.

Episode

0:40
00:00:00
The increase in the money supply was the greatest in 150 years in a two-year period and instead of standing against
00:00:06
it he didn't. >> And one word will always be attached to Chair Powell and that's transitory.
00:00:12
>> Yeah, we said terrible mistake and when you saw the money supply increasing at
00:00:16
those rates, I was on the airways three weeks after four weeks after COVID looking at the data and I say ain't no
00:00:22
chance that this is transitory. They don't want to make that mistake again. Although, you know, history
00:00:30
suggests as time goes on people forget mistakes that they had made earlier.

Episode Highlights

  • Chair Powell's Legacy
    One word will always be attached to Chair Powell: transitory.
    “And one word will always be attached to Chair Powell and that’s transitory.”
    @ 00m 07s
    June 01, 2026
  • The Mistake of Transitory
    The speaker warns against the mistake of calling the situation transitory.
    “Yeah, we said terrible mistake and when you saw the money supply increasing...”
    @ 00m 12s
    June 01, 2026

Episode Quotes

  • Ain't no chance that this is transitory.
    Did the Fed Wait Too Long on Inflation?
  • History suggests as time goes on people forget mistakes.
    Did the Fed Wait Too Long on Inflation?

Key Moments

  • Transitory Debate00:07
  • Historical Reflection00:30
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