Posted on 12/29/2021 10:28:11 AM PST by Red Badger
American consumers are grappling with the fastest price increase in decades, with the cost of everything from cars to gasoline to food soaring nationwide.
And the problem may get worse before it starts to improve.
In a recent analyst note to clients, Goldman Sachs economists warned that pandemic-induced disruptions in the global supply chain – which have caused congestion in ports and warehouses nationwide – could last longer than expected as surging demand struggles to keep up, meaning that inflation metrics will remain "quite high for much of next year."
"It is now clear that this process will take longer than initially expected, and the inflation overshoot will likely get worse before it gets better," they wrote.
Inflation, as measured by the Federal Reserve's preferred gauge, has climbed to the highest level since February 1982. In November, the personal consumption expenditures price index jumped to 5.7%, well above the Fed's preferred target of 2%. The data is further evidence of a spike in prices illustrated by a separate measure – the Consumer Price Index – which showed inflation rose by 6.8% in November from the previous year.
The hotter-than-expected inflation report will likely reinforce the Federal Reserve's decision in December to accelerate the withdrawal of its monetary support for the U.S. economy and could create additional pressure on the central bank to further tighten policy in 2022 by hiking interest rates.
Although policymakers voted to hold rates near zero, where they have sat since March 2020, new economic projections show that every Fed official has penciled in at least one rate hike next year – a considerable shift from September, when half of the central bankers believed interest rate increases were not warranted until at least 2023.
Officials now project rates to stand at 0.9% at the end of 2022, 1.6% at the end of 2023 and 2.1% at the end of 2024.
At the conclusion of its most recent policy-setting meeting, the Federal Open Market Committee said that it would double the reduction of its asset-purchase program to $30 billion a month, a timeline that could phase out the purchases entirely by March rather than the original June trajectory laid out last month.
I’ll sign up for inflation if it guarantees the end of the Rats’ control of the House and Senate.
Define “worse”. It’s already “worse” than what’s being reported. I suspect instead of a 12% increase, it could be 8% next year, and the MSM will report it as a victory for the Brandon administration since it is a “reduction”.
FBJ and Congress
It’s good to have inflation, media will say. Smoking, red hot super economy. Media also says Biden is down to a new low in popularity. 44 percent. Down from 43 last week, a new low. Democrats gerrymander and redistrict and sue into a ten seat increase in Congress. Going to be a great year.
——the problem may get worse before it starts to improve.——
It takes no sagacious wisdom to make that statement.
President Xi in China is implementing China Socialism. The first order of business after the destruction of Freedom in Hong Kong is the nationalism of businesses. The fist major indication was the capture of Alibaba and the end of Jack Ma who was one of the truly great world class businessmen. The nationalization is now clear as the real estate industry is being destroyed and the government is stepping in “to protect the interests of the People”. Foreign companies including true giants are closing shop and moving. what was is not and likely will not be.
The world will cry out for it’s fix of China stuff and it will not be forth coming. The price of everything unavailable from China will rise.
Meanwhile in America, President is acting like President Xi. Biden is trying to impose American socialism. Unlike the successful President Xi, Biden and his socialist cronies are failing. As a matter of fact, the City States that are the source of the Biden power are failing, rotting from with in. Thye American socialists have used the covid disease to implement a labor shortage that is inflationary and results in the rise in the costs of everything.
Xi and Biden........ two peas in socialist pods
Just think how much money these economists are making to make these predictions ??? talk about your Captain Obvious, I would not be surprised if they got the idea from a box of Cracker Jacks as the free prize.
We are only 1/4 into this shitshow. Better buckle up, Buttercup!
Biden needs to double inflation to catch up with Carter.
Just give him time..................
It’s hard to think of a player more responsible for the creation of inflation than Goldman Sachs.
An economist only supersedes inaccurate predictions of that of a weatherman.
At least the weatherman has a satellite!..............
Amazingly we are unable to find the source of the problem. Print print print print...
We have a bizarre scenario of monetary inflation at the same time we have underlying DEFLATIONARY demographic and economic trends.
Foxtrot
Bravo
Juliet
Foxtrot
Juliet
Bravo
my bad lulz
It should be illegal to intentionally destroy the value of people’s savings.
That is how governments typically get out of huge debt by inflating the currency to pay of debts with worthless paper..................
Good the higher the better
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