Economic Prism | Independent Ideas on the Economy, Financial Markets, and Investing, Viewed Through a Prism of Free Market Principles, Limited Government, and Individual Liberty
Rising consumer price inflation is not going away. This, of course, is counter to the “transitory” argument made by Federal Reserve Chairman Jerome Powell earlier this year.
Powell’s cohort, Atlanta Fed President Raphael Bostic, recently admitted inflation is not transitory. This admission comes with assurances the Fed will properly manage it. We have some reservations.
The effects of rising consumer prices range far and wide. For one, the pinch rising prices put on consumers is extraordinarily disruptive. It acts like a hefty tax…eroding family budgets that are already stretched. In this ongoing staglation, personal income gains lag far behind rising consumer prices.
