Posted on 10/08/2021 7:52:20 AM PDT by MNJohnnie
NEW YORK—Both supply-side and demand-side factors are contributing to U.S. inflation right now, but most of the current price changes may be driven by pandemic-related shifts that could subside over time, Cleveland Federal Reserve Bank President Loretta Mester said on Thursday.
Policymakers need to distinguish short-term inflationary pressures from inflation that could be longer lasting when determining how to respond, Mester said during a panel organized by the European Central Bank
“How much of that increase is driven by supply shocks and how much of it is driven by demand that would respond to monetary policy?” Mester said.
An increase in medium- and long-term inflation expectations, paired with a continued rise in inflation, could be a sign that the price changes are being driven more by higher demand than policymakers anticipate, said Mester. However, the Fed official, who will have a vote next year on the Fed’s policy-setting committee, said that is not her baseline forecast.
“Right now, my view is it’s pandemic related but we’ll have to wait and see,” said Mester.
Some of the supply-side challenges caused by the pandemic may take longer to be resolved than initially expected and policymakers will keep an eye on those upside risks to inflation, Mester said. But there are consequences to responding too early, she said.
“Fundamentally, if it’s supply-side driven, that’s not something monetary policy should be responding to,” Mester said, adding that officials should keep an eye on inflation expectations and other indicators to know if monetary policy is too accommodative or not providing enough accommodation.
Fed officials have signaled they could begin reducing the U.S. central bank’s $120 billion in monthly asset purchases as soon as November.
Policymakers set a higher bar for raising interest rates, which Mester previously said could be met by the end of 2022 if the labor market continues to improve.
"It's the spending stupid"
Year 2023-—loaf of bread $9,000 due to Covid.
“Pandemic-Related Factors” — yeah, like Wash DC showering money from helicopters in response to the pandemic. It’s Wash DC doing the only thing it knows how to do — give aways OPM.
They always obfuscate and cover up truth.
Jen Psaki - The Global Plandemic
https://www.youtube.com/watch?v=9mzPULDY9MQ
Even if, for the sake of argument, one adopts this completely myopic view, it’s equally myopic to believe that government(s) will give up their self-assumed mandate to act as our saviors any time soon. Even if CV-19 went away tomorrow, which it’s not gonna do.
Highest since the 70s, go figure, huh?
Suffer you peasants, suffer. /s
“It’s the spending stupid”
Spending is only half of it. The free market is based in simplicity on supply/demand. So the spending aspect is only controlled by the need and the availability of product. The only consistent thing right now is that there is money out there. And when the inflation reaches the critical point, the money becomes a premium to the basic product rather than the optimum.
Things like new car dealers, jewelry stores, casinos, restaurants and a number of businesses related to “extras” will have to shut down when products and services of their like become enough of a funds liability due to a large enough amount of lacking customers. And at that point, the government will be losing so much in revenue they will either have to modify their stance, again, on the pandemic, or buy land in Tahiti. And they are running out of the options of having to deal with the obvious...financial failure of their own wallets. This is why they needed to raise the debt ceiling to keep the animals at bay with the illegals and stupid employment moves catching up with them as their expenses are going sky high.
So is it just the spending? Yes, if you consider theirs and as long as the pandemic can be blamed and utilized as a tool against the normality of product supplies and open competition. But it is the lack of it that will change the outcome of it and force changes.
So the ebb of power the socialists have created will be destroyed the same way it rose. And the same tools that were used to create it will be the reason. But how much damage is going to be caused in the meantime to how many countries. Better oil your gun and make sure you’ve got a lot of ammo. That way you can go down fighting for what’s yours when the poor and illegals come after it. Happens in every war. Or forced revolution like in 1775.
wy69
“It’s the spending stupid”
Spending is only half of it. The free market is based in simplicity on supply/demand. So the spending aspect is only controlled by the need and the availability of product. The only consistent thing right now is that there is money out there. And when the inflation reaches the critical point, the money becomes a premium to the basic product rather than the optimum.
Things like new car dealers, jewelry stores, casinos, restaurants and a number of businesses related to “extras” will have to shut down when products and services of their like become enough of a funds liability due to a large enough amount of lacking customers. And at that point, the government will be losing so much in revenue they will either have to modify their stance, again, on the pandemic, or buy land in Tahiti. And they are running out of the options of having to deal with the obvious...financial failure of their own wallets. This is why they needed to raise the debt ceiling to keep the animals at bay with the illegals and stupid employment moves catching up with them as their expenses are going sky high.
So is it just the spending? Yes, if you consider theirs and as long as the pandemic can be blamed and utilized as a tool against the normality of product supplies and open competition. But it is the lack of it that will change the outcome of it and force changes.
So the ebb of power the socialists have created will be destroyed the same way it rose. And the same tools that were used to create it will be the reason. But how much damage is going to be caused in the meantime to how many countries. Better oil your gun and make sure you’ve got a lot of ammo. That way you can go down fighting for what’s yours when the poor and illegals come after it. Happens in every war. Or forced revolution like in 1775.
wy69
Mister Mester is full of bluster....................
Cleveland Federal Reserve Bank President Loretta
Or as late as . . .
Jobs report estimation: 500,000 - Reality: 194,000.
Goods in shortages, and money supply is up-both create inflation.
Total B.S.
The toughest time for the vaccine impact was under Trump,
and he held things together rather well.
Poor Democrats... it’s so bad they are running out of things
to blame their incompetence on.
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