• Louisiana Republican Senator John Kennedy recently argued that the U.S. Federal Reserve may need to increase the federal funds rate to 8-10% in order to address inflationary pressures.
• In a recent interview, Kennedy also criticized the Biden administration for bailing out Silicon Valley Bank and Signature Bank, emphasizing that this was essentially a bailout.
• Kennedy went on to compare modern financial institutions to “sophisticated Ponzi schemes” and warned of potential panic should any small disturbance occur in the banking system.
Louisiana Senator Compares Modern Banks to ‚Sophisticated Ponzi Schemes‘
Louisiana Republican senator John Kennedy recently stated in an interview published on Wednesday that the U.S. Federal Reserve may need to increase the federal funds rate to 8-10% to address the country’s inflationary pressures.
Senator John Kennedy: ‘Powell’s Gonna Have To Raise Rates Much Higher Than He Normally’
During a recent interview with CNBC, Louisiana Republican senator John Kennedy expressed his belief that the U.S. central bank will need to increase the benchmark bank rate from its current level of 5% to around 8-10% to combat inflation. Kennedy went on to state that Federal Reserve chairman Jerome Powell will have to raise rates much higher than usual if Congress does not slow down its stimulus spending. On the same day that senator John Kennedy made his remarks, the U.S. Federal Reserve increased the benchmark bank rate by 25 basis points (bps), marking the tenth consecutive rate hike and bringing the rate up its highest level in approximately 16 years.
Kennedy Calls For Biden & McCarthy To Have An Adult Discussion About Debt Ceiling
In addition to discussing inflation, Kennedy also addressed issue of debt ceiling, calling for president Biden have serious conversation with House speaker Kevin McCarthy (R-CA) about how allocate resources and reduce inflation . According Kenneth it is time for leaders have an “adult discussion” about this critical issue and added: I don’t think you can do it without reducing spending and debt .
Kennedy Compares Modern Financial Institutions To Pyramid Schemes
Senator John Kennedy also addressed concerns about US banking industry , warning modern technology can quickly turn small disturbance into full-blown panic . According Kenneth banks today rely heavily on trust , are far less fortified than they used be . In fact , he went so far as compare modern financial institutions ‘sophisticated Ponzi schemes ’ stating they essentially sophisticated Ponzi schemes .
U.S Treasury Secretary Janet Yellen Warns Of Potential Default On Debt Limit
US Treasury secretary Janet Yellen recently warned country could face potential default on debt limit June , which could dire economic consequences government defaults on debt payments .