Broken clock is right twice a day. I can keep spewing the same thing for years and eventually Ill be right. That doesnt make you some great nostradamus @Nine_Ender I saw a chart on it if i can find it ill post it.
Powell is correct. The consequences of not keeping money flowing in the economy would be dire. What is important is that, as the economy begins to recover, the excess money in the economy must be timely withdrawn. The best way to do this is through a small increase in the upper income tax bracket and adding one more bracket above that. Excess money can also be withdrawn via bond sales, i.e., a main tool the Central bank has at its disposal. A tax increase is better, however, because it incurs no future treasury obligation. When the C.B. sells bonds it removes money from the current economy but replaces the removed money with a Treasury liability. Too great an aggregate Treasury liabilities could eventually lead to systemic problems more difficult to deal with via the mandatory servicing of bonds; bond servicing is not discretionary! A tax increase is by far the better choice for removal of residual Covid money. This is the route the experienced and rational Biden will push if elected. He'll need Congress's cooperation. For that reason our long range economic health will be better served if the Democrats take both Houses in the next election. Trump, in conjunction with a Republican held Senate, is a disaster waiting to be visited on some hapless future administration. Trump seemed to have understood this, when he said, "Who cares, I won' be here." That remark was made to someone in his administration cautioning against the longer term effects of too easy a money policy. Once recovery starts, if excess money left over from the Covid crisis is not timely removed from the economy, we are in for substantial inflation. We are already seeing above target inflation in some sectors. Inflation will become generalized and serious if the Treasury and Central Bank are not allowed to remove sufficient excess money from the economy. Trump has consistently pushed for flooding the economy with easy money, low interest rates, and a cheap dollar -- all going hand in hand and beneficial to major debtors, such as real estate developers. We are not, however, all real estate developers. Trump's recent, insanely self serving, election ploy of telling everyone a big tax cut is coming would cause ruinous inflation were to materialize. It won't materialize of course, because it's the opposite is what's needed, but not quite yet.
The economy would be fine but too many people believe in this bullshit pandemic hoax. It was supposed to be 15 days to flatten the curve so our hospitals don't get bogged down. Now it's been 200+ days and it's no longer about that, it's about impossibly either getting to zero new daily cases or waiting until a vaccine that no doubt will be mandatory if democrats win in November.