Introduces topic: Iran War impact on rate cuts, Senator Tillis blocking Fed nominees over DOJ probe into Powell.
speaker1
Judy Shelton
Criticizes Powell for being petulant about DOJ probe, refusing to testify before Congress, and senators walking on eggshells to appease him.
Asks about dollar value loss over a lifetime with 2% inflation and during Powell's tenure.
speaker1
Judy Shelton
States 2% inflation target means dollar loses 79% of value over 80 years; under Powell, cumulative inflation is 29%.
Questions origin of 2% target and whether zero inflation is feasible.
speaker1
Judy Shelton
Explains 2% target originated in New Zealand as a performance contract; Greenspan believed stable prices meant zero inflation.
Asks how Kevin Warsh would approach Fed role and notes Shelton's preference for supply-side answers over restrictive rates.
speaker1
Judy Shelton
Argues Fed's model of curtailing inflation by cutting growth is wrong; advocates increasing supply, not making borrowing expensive.
Presses for economic impact of Iran War, noting lack of discussion.
speaker1
Judy Shelton
Says speculation is inappropriate due to dependency on duration and energy costs; criticizes Powell for not testifying on Fed's thinking about higher energy prices.