Dee Feat is in Dee Flation - part the forty third

Leave it to Liz to yell at Powell. And, in the process, get him to admit that the core of the current inflation situation is constrained (real or concocted) supply. You have read that here, naturally.

During a Senate Banking Committee hearing Wednesday, Democratic Senator Elizabeth Warren urged Powell to proceed with rate hikes cautiously and avoid setting off a recession that costs millions of jobs.

Warren asked Powell if Fed rate increases will lower gas prices, which have hit record highs this month.

"I would not think so," Powell said.

Warren asked if grocery prices will go down because of the Fed's war on inflation.

"I wouldn't say so, no," Powell said.

The problem with monetary policy is: that's all it is. There is no theory of money, unlike special relativity or evolution. Yes, Dr. Keynes wrote a book that sort of said that ("The General Theory of Employment, Interest and Money"), but its point was general macro. In the Real World, monetary policy is just like any other policy: make rules which favor your tribe and hurt the other tribe.