There is no question regarding inflation ramping...only debate is
how transitory it is. Fed hoping it is transitory, and willing to let conditions run hot for some time...other market participants believe inflation may be more persistent. As to why to thank Joe and the Dems (as well as the Fed) for this....two reasons.
1) Unprecedented stimulus/deficit spending during a time when the economy is already recovering
2) Stimulating wage inflation (wages are the single biggest cost for American companies and they get passed on) through maintaining well above normal jobless benefits which make it illogical to work for less than $18 or $19 an hour (why work for less when jobless benefits provide $15 an hour tax free). So we have 8.1 mn open positions. Of course the supplemental $300 a week runs out on Sept 6...and schools will be open ...so we will reach a more normal equilibrium.
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In response to this post by WaxHoo)
Posted: 05/12/2021 at 10:59AM