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Economists warn about inflation | National News

(Center Square)-Economists have warned of potential inflation not seen in the United States in decades, as the Bureau of Labor Statistics announced that the consumer price index has exceeded 5% in the past year.

According to a survey conducted by The Wall Street Journal, economists and scholars predict higher inflation than the previous April survey.

Survey respondents have shown that core consumer spending prices are projected to rise 3.21% by the fourth quarter of this year and nearly 2.3% by the fourth quarter of both 2022 and 2023. .. Estimated 2021 from the previous survey.

The survey also found that the average inflation rate from 2021 to 2023 was about 2.58%. The impact on consumer prices on most products will vary in decades. Higher prices can hurt consumers when buying all kinds of goods, from food to gasoline.

Inflation alerts have been at stake since the US economy began recovering from the coronavirus pandemic, which closed most of its economy early last year.

The National Republican Parliamentary Commission has called for a new investigation from The Wall Street Journal to blow up Democratic policy.

“When Americans need a cash-filled wheelbarrow to buy groceries and gas, they can thank Washington Democrats,” NRCC spokesman Mike Berg said in a statement Monday. I said in.

Senate minority leader Mitch McConnell, the Republican Party, has blamed the Biden administration and Democratic policies amid rising inflation.

“Consumer prices in June were significantly higher than expected,” McConnell said. “Families feel it everywhere, from supermarkets to petrol pumps, homes and used car lots. Since then, I’m very grateful to the Democrats for their half-baked spending since spring.”

The White House had previously shown that inflation was a concern when experts began to be wary of inflation forecasts a few months ago, but it was also confident in their policies.

“We’ll talk about what we take seriously about inflation,” White House spokeswoman Jen Psaki said in May. “The expectation from economists inside and outside the government is that the impact of the proposed investment is temporary, temporary, and the profits far outweigh the risks.”

The survey will also be conducted when the Ministry of Labor reported on Tuesday a 5.4% increase in the consumer price index from June 2020 to June 2021. The consumer price index is for food, energy and other commodities.

Some experts, such as James A. Dawn, vice president of financial research at the Cato Institute, believe that rising inflation is the reason the Federal Reserve is changing current interest rate policies.

“Acceleration [consumer price index] Inflation from 5% year-on-year in May to 5.4% in June, while the unemployment rate is 6% [Federal Reserve]”Dawn said. “Chairman Powell sees current inflationary pressures as temporary, but policymakers are able to sustain inflation due to supply shortages and huge government deficits that the Fed is likely to raise. We need to take sex seriously. “

Mr Dawn also pointed out the unclear message of the Federal Reserve chairman about when interest rates will be raised as a frustration.

“The Fed has promised to keep interest rates near zero and maintain its large balance sheet until the economy reaches its full potential,” Dawn said. “The Fed has also declared that it wants to raise inflation to an average inflation rate of 2%, but no period has been announced.”

The Federal Reserve was cautious about interest rates as the United States moved out of the coronavirus pandemic, but experts like Dawn wanted change and clarity from the Federal Reserve in uncertain news about inflation. is.

“How long does it take for the Fed to change its policy stance? No one knows,” Dawn said.

Economists warn about inflation | National News

Source link Economists warn about inflation | National News

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