Prices ARE HIGHER…..
Some consumer goods are simply not on the shelves….
Businesses charging HIGHER prices
Higher gas prices (That ARE coimning down slowly)
The Fed is going after that by raising interest rates….
THAT has some of us worried that the increase in borrowing money will trigger a
The piece linked below is saying America HAS a booming economy…
Ask people in the street if they believe THAT?
Most of us feel that at some point?
We WILL begin to cut back on purchases and THAT WILL begin a recession…
Oh, and virus numbers are inching back up again?
For much of last year, Fed officials shared Mr. Sojourner’s view, seeing inflation as a result of pandemic-related disruptions that would soon dissipate. When those disruptions proved more persistent than expected, policymakers changed course, but too late to prevent inflation from accelerating beyond what they intended to allow.
The challenge is that central bankers must make decisions before all the data is available.
It is possible, for example, that the imbalances that led to rapid inflation are beginning to dissipate, largely on their own. Federal aid programs created early in the pandemic have mostly ended, and many families have drawn down their savings. That could bring down demand just as supply is starting to catch up. In that scenario, the Fed could short-circuit the recovery if it acts too aggressively.
But it is also possible that strong job growth and rising wages will keep consumer demand high, while supply-chain disruptions and labor shortages linger. In that case, if the Fed is too cautious, it runs the risk of letting inflation spiral further out of control. The last time that happened, the Fed under Paul A. Volcker had to induce a crippling recession in the early 1980s to bring inflation to heel.
Mr. Powell has argued it is not too late to prevent such a “hard landing.” But even if a recession is inevitable, it isn’t likely to happen overnight.
“I don’t think we’re going to go into a recession in the next 12 months,” said Megan Greene, a senior fellow at Harvard’s Kennedy School and global chief economist for the Kroll Institute. “I think it’s possible in the 12 months after that.”…