Fed's Waller Says Inflation Jump Likely Temporary, Urges Patience

MSN.com / The Wall Street Journal ^ | 05/13/2021 | Paul Kiernan

[Condor 63]

Que Kevin Bacon in Animal House.

[cgbg]

when to begin scaling back its easy-money policies

The Fed has painted itself into a corner.

If they raise interest rates the interest on the national debt will eat up all the tax receipts...and the budget deficit will explode like a supernova.

[Codeflier]

They are going to act too late! Double digit inflation is baked in and will be hard to put the brakes on later. Needs to be done now, or it will be much more painful.

[Terry L Smith]

‘Several months’!!!!!

That’s 3 biz quarters, with only 5 months left in this federal biz cycle (Oct. 1)
NUTS!!!!

[KC_Lion]

Only Two Weeks to Flatten the Inflation Spike!

[sphinx]

Yes. We are about to have four years of unexpected, anomalous, and transitory economic hiccups. Every month.

[eyeamok]

Can’t they just add a zero to all denominations of Federal Reserve Credits and Notes? We will all be RICH!!

[MeneMeneTekelUpharsin]

ROFL!!!

[MeneMeneTekelUpharsin]

If they raise interest rates the interest on the national debt will eat up all the tax receipts...and the budget deficit will explode like a supernova.

They have put us entre la espada y la pared this time.

[Starboard]

Unexpected...transitory...just a blip

[Starboard]

Great comment!!!! Absolutely nailed it.

[T. Rustin Noone]

If this spike is “temporary”, then we can expect that prices will return to pre-inflationary times?

Who in this world believes that will ever happen?

[Nathan _in_Arkansas]

Boy, they sure went from “there’s no inflation” to “the inflation will be temporary and insignificant” to “just be patient as we weather the inflation” pretty quick.

[drypowder]

Inflation is temporary, just like this puke’s appeasement. Temporary inflation doesn’t fit in to the NOW anti-American goal. They are going for broke because if they don’t succeed now, it will be all over for them.

[Salman]

Just long enough to wipe out your savings.

[Forward the Light Brigade]

Prosperity is just around the corner said Herbert Hoover as the depression was strangling the nation.

[fhayek]

They have printed cash by the wheelbarrow full, while, simultaneously slowing down the productive elements in the economy (because of covid).

More dollars chasing fewer goods equals inflation, ceteris paribus.

[alloysteel]

The inflation is now systemic, and poised to grow at near exponential rate.

Too much money, too few goods. When we were in the midst of plentiful goods and services, vendors were in a position to underbid their competitors and thus win the approval of buyers. Now, with the scarcity of both goods and services, and many potential vendors squeezed out of the market, those remaining can raise the prices to whatever the market will bear. And with too much money just lying around, the consumers will be bidding against each other.

Tinderbox waiting for the torch to be applied.

[princeofdarkness]

“Prosperity is just around the corner. Mark my words. Now let me finish my pudding.”

Joseph Herbert Biden

[monkeyshine]

They can’t raise the rates before they issue another couple of trillion in new debt.