Rock, Hard Place, and a Broken Compass: The Fed’s 2% Inflation Lie

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The Fed cuts a quarter point, shrugs, and tells America to trust the same priorities that have destroyed 54% of our buying power. Chris breaks down why the 2% target is nonsense, why QE is quietly creeping back, and how Washington’s spending spree—from wars to earmarks to endless bailouts—has pushed us into slow-growth inflation. Three dissents won’t change the fact: mortgage rates aren’t coming down, and the Fed is flying with a faulty dashboard.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski Rock and.

Speaker 2 (00:16):
A Hard Place. A. It's a Federal reserve, okay, fed
lowered by a quarter basis point. A golf clap, Yeah,
what does it mean. Well, let's listen to what the
Federal Reserve had to say. Well, oh, only maybe one

(00:37):
rate cut next year. They're spooked. I've been watching these
things long enough, even though you had three descents, and
this is again I've explained this for It's part of
the problem with the Federal Reserve. It has priorities. That's

(00:58):
the problem. Can't have more than one priority. You should
have one. Their priority should be inflation. I uh talking
about the idea that we need to have. It's it's
it's the lie becomes the truth. I mean, people say

(01:19):
things this, you know, even if they're untrue. For a
long enough period of time, the lie becomes the truth.
And this idea, I got to keep inflation at at
two percent target, right, That's what we got to keep
it at Why excuse me, why I'm gonna do my

(01:40):
website thing that Todd Baskin's there and uh big, I
don't get it. I don't know why. Why two percent?
Why not zero? Why not zero? I know there's a
few of us out there. Judy Shelton's much brighter than
I am. She's been saying this for a long period

(02:03):
of time. I don't know why we have to continually
degrade our currency. Why don't make any sense to me?
Hey do we have to do we inflate our systems
of measure? Like? Does does a foot become bigger than

(02:26):
a foot that we know? Now? Does the temperatures fahrenheit?
I mean, is it not thirty two degrees anymore? No? No, no, no,
it's we're changing it. We're changing it. It's now thirty
Why Another funny way I look at it this was

(02:47):
that the movie's spinal tap with the amplifier and he's like,
uh yeah, we got an amplifier that goes ten. It
goes to eleven. Anyway, neither here nor there. There's no
reason for this, but priorities has got the fed into trouble.

(03:08):
It's a bit of a ruse, and it's again by
having full employment part of their their job. Right, No,
it shouldn't be their job. They shouldn't give a damn
about jobs. Shouldn't concern them, should concern them. That should
be up to policy makers. That should be up to

(03:32):
policy makers creating conditions here in this country so people
want to go out and build and create. The job
of the Fed to reserve should be to keep inflation
at zero Again. Past thirty years, you have lost fifty
four percent of your buying power. That's insane. That's insane.

(03:55):
And we're back. And why I tell you that they're
concerned is we are basically quantitative easing is back. Yeah,
they're gonna start buying short term debt, pumping more money
into the system. Yay party on Wayne, party on Garth.
Markets love that Ken. With these conditions, you better own assets. Hey,

(04:27):
watch dog and Wall Street's been pretty much right on
this for the past thirty years. When we got nuts
when it came to budget busting, Bill Clinton out the door,
incomes w up boy terrorist attack here in the country. Ah, well,
you know what, We're just gonna invade every country on
the globe. We're gonna bust the bud didn't matter we're
gonna spend and spend and spend, and we lost our way,

(04:50):
lost our way. You know, thirty eight trillion in debt,
additional two trillion this year, one point two trillion in
interest payments. Again, you can't even comprehend, and if you
wanted to, you can't. You can't get your arms around
that number. Okay, sorry, Stephen Hawking, Okay, we'll have trouble
just getting his arms around that number. That's where we're at.

(05:16):
That's we're at, and we're told, okay, oh, economy is
going to be a little bit stronger next year two
point four percent gdp.

Speaker 1 (05:27):
M.

Speaker 2 (05:30):
It's so two point four Really, I want I want
the Reagan Clint years. Can we bring those back? Can we?
Can we bring those years? But we can't. We can't,
you know, you want to call it, you know, technically,

(05:54):
stagflation would be negative economic growth with inflation. Again, we've
got weakened economic growth with inflation. They think inflation is
going to come down a week, a little bit next year. Listen,
you know, tariffs off the table. I think you know,
most certainly things are going to proof. We're going to

(06:16):
see what happens with that, and the Supreme court. But yeah,
I mean, I've gone off this past week on various
different policies in Washington, d C. And more spending and
ear marks, and another eight hundred eight hundred million dollars
to Ukraine. And this one gets this and you get

(06:38):
a car. It's like all the Oprah Winfrey show back
in the day. You get this, you get this, you
get this. It's all on our taxpayer now and we
can't afford any of it. So the Fed had their
meaning three descents, three descents. One of them, you know,
was they wanted fifty percent. That mirror guy that's Trump's
buddy that he just put on. Do you think that

(07:01):
mortgage rates are going to come down based upon this? No,
they're not. They're not coming down, says to do with
the tenure, this was expected. Don't expect really any movement
when it comes to mortgage rates, watchdog on Wall Street

(07:24):
dot com