This is another one of the Biden administration’s many experiments.
How much spending can the federal government get away with without raising taxes to pay for it? How much funny money can the Fed inject into the economy before it overheats?
“Inflation isn’t always and necessarily a bad thing. It’s one of many variables in the economy, and its presence helps some groups of people and harms others. But that kind of nuance is getting lost in the present debate. …
Where it stands: The messaging from the Fed and the Biden administration is clear. Consumer price inflation has been low — too low, and in fact — for many years. As we recover from the pandemic, it might be high for a while. But that’s likely to be temporary, and nothing to worry about.
Inflation hawks, led by Larry Summers, disagree and warn it could accelerate beyond control. Invariably they conjure up images of the 1970s. …”
Nothing to worry about.
We seem to be hearing that one a lot these days.
“Prices were up by 3.6 percent in April compared to a year ago, continuing a trend of rising inflation, although economic policymakers say the increases aren’t here to stay.
Data released by the Bureau of Economic Analysis on Friday showed that prices rose 0.6 percent in the past month. However, consumer spending fell 0.1 percent in April compared to March, after adjusting for inflation, as stimulus running through the economy began to slow down.
The latest inflation data is unlikely to rattle the Federal Reserve, which is charged with keeping prices stable and unemployment low. Fed leaders have argued for months that a rise in inflation will be temporary, and that prices will simmer down as the economy reemerges from the pandemic. …
The Biden administration also expects that inflation will rise over the coming months before tapering off to more sustainable levels. On Thursday, Treasury Secretary Janet Yellen said that “as the economy gets back online it’s going to be a bumpy process.”
“I don’t think this is endemic inflation,” Yellen said. …”
“A key measure of inflation accelerated to a faster-than-expected 3.1 percent annual gain in April, the Commerce Department reported Friday.
The last time the core personal consumption expenditures index hit 3.1 percent was in May of 1992, when George H. W. Bush was president and inflation was still recovering from the stagflationary 1970s era. …”
I guess we will see.
I’ve created a new category so that can track these predictions about rising crime, inflation, gas prices and illegal immigration over the next year. If this is ass covering, we will find out eventually.