October 15, 2018.Jerome Powell, who took office in 2017, has had some headaches these days.As the chairman of the Federal Reserve, this position has many honors and titles on the outside.For example, what "the tsar of the world economy", "the emperor of the dollar", "the president of the dollar" and so on.Wherever you go, you will be greeted by the head of state on the red carpet.The briefcase of the Fed chairperson hides the secrets of the "economic engine" of the United States and the world, which many have compared to the nuclear button of the American president.But these accolades have little to do with Rom Powell for the time being.Because these honors were accumulated by his predecessors and predecessors and predecessors.As the new chairman of the Federal Reserve, Jerome Powell has been in the process for less than a year.Jerome Powell is more suited to this new and high-powered position than his former role as deputy finance secretary in the George H.W.
Bush administration and a think tank in Washington.When people talk about the chairman of the Federal Reserve and the above honorary titles, the first thing that comes to mind is always the retired old Jewish man Alan Greenspan.And it won't be him Jerome Powell!
Jerome Powell doesn't say it on the surface, but he has some anger inside.Because no matter how powerful Greenspan is, he has already stepped down from that position, and now he is sitting on it, holding the supreme power in charge of a country's economy, and this power can even radiate to the whole world!
On the bright side!
He is the king of the world economy!
Jerome Powell's American economy was a good time after a decade of bull market.The overall U.S. market, after the financial crisis in '08, has been almost upswinging in the past decade.In particular, the U.S. stock market has created a century-old peak.To put it simply, Jerome Powell is looking at the world to inherit the great situation that Alan Greenspan has left him.Jerome Powell also admits this.But now his first challenge came.Since October 2018.The first is the decline in US stocks, which is the worst in a decade.Then there is the futures market, which, in addition to the unexpected strength of gold, also fell by a frenzied margin.There is also a sweater war launched by the unreliable Mr.and the continued strength of the US dollar.All these trends are heralding the possibility of a financial crisis.In the past half a month, Jerome Powell has been really busy, and even the top of his head, which was already silver-haired, seemed to be a little whiter.Jerome Powell is now feeling Greenspan's struggle.He has only been in office for more than a year, and when he encountered this crisis, he was actually not as powerful as the previous ones, but he was already emaciated like this.If there was a financial tsunami financial crash like '08.Jerome Powell didn't know if he could stand it.Now if you can't stand it, you have to go up, and if you can stand it, you have to go up.The position of Fed chair is not just an honor, it also has responsibilities.This morning, Jerome Powell, the Fed's leader, as usual, discussed with the thinkers and other members and directors of the Fed how to save the market.How to deal with the past in the face of this possible imminent financial tsunami and financial crisis.One of the directors said: "The impact is not as horrible as it was ten years ago!"
We have experienced the despair of the Ray Man brothers after the fall of ten years ago, and now it is like the difference between an elephant and a little ant!
”Another supervisor agreed: "Indeed!
I still have lingering palpitations about that horror!
”Another balding executive said: "This is not a financial crisis, this is not a financial tsunami, this is at most a small normal market downturn!"
”A Fed thinker agreed: "The stock market hasn't crashed yet.The futures market is only a temporary downside, which will not have much impact on the overall market at all!
”"......"
These Fed managers are arguing so much that Jerome Powell frowns!
Because they have been arguing for several days, they have not come up with a few good ideas, and will only make a fuss about interest rate cuts and interest rate hikes.The problem is that interest rate cuts and rate hikes are too powerful to have a huge impact on the whole world, and this is a strategic weapon that is not so good to be used so often.When interest rates are raised, monetary tightening is tightened.A cut in interest rates is monetary easing.These are two diametrically opposed initiatives.Look at how noisy they are.Jerome Powell couldn't help but say, "Except for raising and cutting rates."
Don't you have any other good way?
”After all, he is the chairman of the Federal Reserve, and he is a figure who was pushed to the front desk by the Tianlong family to act as a manager.Since he can sit in this position, it means that he has the support of almost all the American Draco families.Although it does not have the prestige that Greenspan has accumulated over the years, it is for the sake of the position of chairman of the Federal Reserve.Everyone still has to respect Jerome Powell.The crowd stopped arguing.There was silence for several minutes.Until Jerome Powell couldn't help but say something.Another Fed thinker sitting next to him couldn't help but whisper: "This market downturn is actually very small for the overall market over the years......
There are many ways to stop it, such as the way we can learn from the federal finance secretary in '08......"
Jerome Powell: "What way??
”"We can ask Buffett.Let him do some of the things we want him to do in the market, so that investors and the public can see the confidence of the market!
”"That's it.""
Everyone's improvement of the market will definitely get a huge boost!""
At this level.Confidence is actually the most important thing, because the market has not jumped yet!
”Hearing the staff officer proposed by this think tank, Jerome Powell pondered.That's a good idea.The current market downturn is within an acceptable range.The remedy that should be done is how to stop it.Now is not the time to save the market.Let the myth of wealth like Warren Buffett stand up, and it can indeed mention the role of a great confidence booster.In 2008, at the invitation of the then Treasury Secretary, Warren Buffett did the same.The results are remarkable.It's just that another think-tank immediately put forward an objection: "Asking Buffett to come out is indeed a good idea!"
But have you ever wondered what the price is?!
Buffett is not so easy to invite, even if it was in 08, he did have the idea of saving the market.But when it came time to bail out, he made his request, and in the end it was fulfilled and he got the benefits he wanted!
”"What will it be this time?
Do you want us to give him another bank?!
”