Good for him for naming the 3 major monthly expenses left out of the Fed’s main inflation rate (the CPI): food, gas, and housing. The three things from our expenses that jump the most with inflation.
But...but...Powell told us inflation was transitory.
So, the Fed has 3 mandates, now? Price stability, economic stability and social justice?!
Most Fed Actions and Government actions in general, always hurt the Lower and Middle Incomes the worst. Either this guy was born stupid or he takes a pill everyday to stay stupid.
“What we’re seeing in these communities is inflation affects them disproportionately,” he said. “I think at the Fed we have to take that very seriously.”
and that is NOT taught in EC101?
In this case inflation is not just being caused by easy money printing. There are ongoing supply chain disruptions, backlogs at the major ports worldwide, shortages of materials, and rising energy costs. Ocean container costs are 4-5 times what they were 2 years ago, as are of course trucking costs (fuel mostly). Producers who can afford to pay extra are getting priority in shipping; and pass that on to the consumer.
It will be worse, and more evident, in 2022 when retailers who have contracted prices for 2021 reset.