While Americans struggle to pay their bills amid soaring inflation, the institutions we rely on to wrestle the economy back to stability are engaged in a secret power struggle which only worsens the impending crisis.
Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen are engaged in a tug of war over interest rates, sources say.
On Yellen’s side are liberal members of the Fed, including the ambitious, climate-obsessed Federal Reserve Gov. Lael Brainard, who spearheaded the stealth takeover of the board by progressives over the past year.
While Powell is determined to bring down inflation by hiking interest rates, as central bankers around the world traditionally have done, sources say Yellen has been counteracting his efforts with the assistance of progressive “doves” of the Federal Reserve, who background journalists that there might be a slowdown in rate hikes, leading to roller-coaster market rallies.
“While Powell is raising rates, Yellen is considering buying back Treasury bonds,” says Brent Johnson, CEO of Santiago Capital, who understands the Fed’s internal dynamics.