Inflation in the United States worries many Americans about the future of their purchasing power, as the cost of goods and services has continued to rise faster each month. Reports say Americans are struggling to pay for child care, groceries, gasoline, lumber, health care supplies and used vehicles. Harvard economist Kenneth Rogoff told reporters on Friday that inflation in the United States was “remarkable” and when it comes to the direction inflation is heading, Rogoff stressed that he thought “we are on. the razor’s edge ”.
Members of the US central bank start to favor reducing asset purchases – discussions on the reduction expected to take place at the Fed meeting in December
Reuters reported on Friday that U.S. central bank policymakers were publicly debating whether the Federal Reserve would cut its bond purchases and raise the benchmark interest rate. Fed Governor Christopher Waller told reporters on Friday that the reduction is expected to begin soon. “The rapid improvement in the labor market and deteriorating inflation data have prompted me to favor a faster rate of reduction and faster housing shedding in 2022,” Waller explained in New York.
Central Bank Vice President Richard Clarida also spoke about the cut at the San Francisco Fed’s 2021 Asian Economic Policy Conference on Friday. “I’ll take a close look at the data we get. by the December meeting, and it may well be appropriate at this meeting to have a discussion about accelerating the pace at which we are reducing our balance sheet, ”Clarida stressed. “It will be something to consider at the next meeting,” he added.
Declining purchasing power of the US dollar
Rising inflation has taken place in America following the US government’s attempt to mitigate the Covid-19 pandemic with lockdown warrants, shut down small businesses and suffocate the supply chain with measures security against coronaviruses. In addition, the government and the Federal Reserve increased the US money supply more in two years than in the previous 242 years.
The US dollar doesn’t go that far anymore, as the cost of beef, hotels and motels, gasoline, laundry supplies, natural gas, eggs, vehicle rentals, furniture and cars opportunity has skyrocketed over the past 12 months. Measurements from visualcapitalist.com indicate that the US inflation rate has experienced the largest increase in 30 years. In addition, the cost of fuel, transportation and meat products saw the largest price increase, from 24% to 39% in just one year.
Child care costs and other costs associated with parenthood are also rising, and bars and restaurants are grappling with inflation, a job crisis and a tight supply chain at the same time. Across the country, prices increased the most in the Midwest and the South in states like South Dakota, North Dakota, Nebraska, Iowa, Kansas, and Minnesota.
Mainstream media continues to claim inflation is good, reporter insists “news inflation is driven by the rich” MSNBC removes tweet that says “inflation we are seeing now is a good thing”
Despite rising inflation, the mainstream media (MSM) headlines have been telling the public things like “don’t worry about inflation” for months. The New York Times attempted to explain this week that inflation “is linked to economic recovery” and recently MSNBC deleted tweets who claimed, “the inflation we are seeing now is a good thing.”
The American journalist who worked for the New York Times, Verge and Vice Media, Sarah Jeong, received a lot of negative reactions for her statements on inflation.
“Waaaaah working class incomes follow or exceed inflation, but my capital gains are not. Boo fucking hooooo, Jeong Recount its 118,000 followers on Twitter. In another controversial statement, Jeong tweeted: “Everything you see about inflation in the news is caused by rich people flipping their sh ** because their parasitic assets are not doing as well as they would like and they are afraid that the unemployment + stimmy checks + 15 minimum wage + labor shortage, that’s why.
Harvard economist: when it comes to the direction of inflation, “I think we are on a razor’s edge”
Americans spending more dollars on goods and services has had a negative impact on people’s funds, and data shows America’s so-called wage hike doesn’t seem to match inflation. There have been numerous reports presenting verifiable data showing that rising American wages are not compensating for rising inflation.
Harvard economist Kenneth Rogoff spoke on “Mornings with Maria” on Friday and the economist explained that US inflation is “catchy.” The former IMF chief economist told Maria Bartiromo that he thinks that “we are on a razor’s edge” in terms of inflation and that there are “50-50 chances or a little less” than the The Fed’s “transitional” prediction is correct.
“I think it’s pretty clear that the first stimulus right after Biden took office and maybe the one at the end of the year in 2020 [was] a little too late in the game, ”explained Rogoff in his interview. “They made inflation worse, and the supply chain and everything,” he added.
What do you think of rising inflation in the United States and the way politicians, Federal Reserve policymakers, and mainstream media pundits deal with data? Do you think inflation will be “transient” or do you think it will last a very long time? Let us know what you think of this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, The Intercept, Archive.org, visualcapitalist.com,
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