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“Inflation under Biden is Not a Pretty Picture” — President Trump (45)
“Inflation is going anywhere soon and will reach its highest marks in nearly 30 yrs under Mr. Biden’s administration” — Paul Ebeling.
A strong post-virus chaos economic recovery will fuel rapid price increases for a while and economists surveyed raised their forecasts of how high and for how long inflation would go.
Speculators are opining that the Fed policy makers might have to raise interest rates sooner or more than they expect to keep inflation under control. But that is just noise.
Inflation is expected to be up 3.2% in Q-4 of Y 2021 from Y 2020, and its annual rise will fall to slightly less than 2.3% a year in Ys 2022 and 2023, according to some economists.
Those projections mean an average annual inflation increase of 2.58% from Y 2021 through Y 2023 reaching marks last seen in Y 1993
I am not saying hyperinflation is around the corner, just that a lot of things have come together in the last yr, and the overall trend of costs across the board is growing faster than in the last 10 yrs.
Investors did not receive any notable economic data Monday.
Looking ahead, the Consumer Price Index for June, the Treasury Budget for June, and the NFIB Small Business Optimism Index for June will be released Tuesday.
- S&P 500 +16.7% YTD
- Russell 2000 +15.5% YTD
- NAS Comp +14.3% YTD
- DJIA +14.3% YTD
PPI data for June will be released Wednesday followed by Retail Sales data for June Friday. Fed Chairman Powell will also testify before Congress in his semiannual report on monetary policy, starting Wednesday.
Have a prosperous day, Keep the Faith!