Fed Chair Admits Inflation Is a Tax, Plans to Keep Raising It

The Federal Reserve's chair recently admitted that inflation is akin to a tax, and despite this acknowledgment, the central bank plans to continue raising it. Inflation has been a contentious issue in recent times, with June's Consumer Price Index (CPI) coming in at -0.4% versus the expected -0.1%, bringing down year-over-year inflation to 3.5%. However, this decline was largely due to a temporary oil price drop, which is now reversing as tensions between Iran and other nations escalate.

Bond yields tell a more accurate story, with the 30-year yield nearing 5.1% and the 10-year near 4.6%, effectively erasing nearly the entire post-CPI rally.

Peter Schiff, in his analysis of the situation, argues that the Fed employs an excessive number of people, with 23,000 personnel required to do a job that was manageable by just 40 individuals back in 1914, without the aid of computers. He suggests that AI could potentially replace or even abolish the institution entirely.