According to a news survey, economists expect inflation to increase going into 2022 and linger for years to come.
• National Association for Business Economics surveyed economists from around the country, and 3/4 of them stated that they don’t expect inflation to fall below the Feds projected 2% until the winter of 2023 or later.
• Julia Coronado, the founder, and president of MacroPolicy Perspectives, said in a news release – “The core consumer price index, which excludes food and energy costs, is now expected to rise 6.0% from the fourth quarter of 2020 to the fourth quarter of 2021, compared to the September forecast of a 5.1% increase over the same period,” she said.
• She also explained that those economists surveyed have significantly ramped up their inflation expectations since September since, under Biden, Inflation is now out of control.
• Economists also said they expect to reach full employment within a year.
• Biden’s November’s job reports were abysmal as only a little over 200K new jobs were created on the DOW project there would be 550K new jobs created.
• Unemployment 0.4% points to 4.2%, where it was back in 2017 under Trump’s first term.
• The Economy is still millions of Jobs short of being at pre-pandemic numbers when the unemployment rate was 3.5%; under Trump, it was a record not seen in decades.
• At the end of October, Inflation clocked in at 6.2%, the highest in over 30 years, and predictions state that the new number for November will be even worse at 6.7%.
• Runaway inflation has spooked the FED as chairman Jerome Powell said that the Central Bank may move more quickly towards raising its interest rate!
SOURCE: NABE Vice President Julia Coronado, the founder and president of MacroPolicy Perspectives