During his "My Take," Wednesday, "Varney & Co." host Stuart Varney argued President Biden and Jerome Powell are to blame for the banking crisis and high inflation thanks to endless big government spending and nonstop money printing.
STUART VARNEY: What a mess. A banking crisis and high inflation. All at the same time.
Jay Powell at the Federal Reserve has to deal with this. We'll find out what he's going to do at around 2 p.m. this afternoon.
I'm not going to try to guess what he's going to do. I'm more interested in asking why we're in this mess. That might give us some idea of what to avoid in the future.
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Spending money and printing money got us into this. Joe Biden moved into the White House in January 2021. He's never stopped spending since.
When inflation started to pick up in the summer of '21, he said it was just "transitory." He kept spending. He met with Jay Powell and appointed him to a second term at the Federal Reserve. Powell kept on printing.
Fast-forward to 2023. Inflation hit 9%. Biden laughably brought in the Inflation Reduction Act, which was really just another excuse to spend more money.
To fight this inflation, the Federal Reserve pushed interest rates straight up. And that helped produce the current banking crisis.
So here we are, in crisis mode.
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The president has learned nothing. He's being egged on by the left, which still runs the Democrat Party. He's still spending by the trillion. That's what Democrats do. It's called vote buying.
Jay Powell. He's locked into interest rate hikes to beat the inflation he helped create. We'll have to wait for a new Fed chair to get any real change in policy, and Powell's term runs until 2025.
Elections have consequences, and we are all now living with the consequences of electing a big-spending president, and the reappointment of a Fed chair who printed far too much for far too long.