Long before the discovery of the Covida-19 epidemic in America, the Federal Reserve adopted a series of monetary easing measures. Then in 2020, the Federal Reserve created a quarter of all the dollars ever spent to help the economy during the eruption in less than 12 months. Although Fed Chairman Jerome Powell and other central bankers have not shown much interest in inflation, a recent poll found that 77% of Americans are concerned about rising inflation in the coming months.
The survey shows that the younger generations fear that inflation will affect their purchasing power.
In the first week of March, Federal Reserve Chairman Jerome Powell was interviewed on the Wall Street Journal’s Jobs Summit and said he was not worried about inflation. Other central bankers also showed little concern about rising inflation, even though the Fed created huge amounts of dollars last year and in 2021.
Rafael Bostic, president of the Atlanta Fed, said recently that the decision on when to raise interest rates will depend on several factors. Bostic stressed that he would not be worried if inflation exceeded 2% or even 2.4% if prices were firm and not volatile. Furthermore, Charles Evans, president of the Cleveland Fed, has been lecturing the public that rising inflation is welcome and low inflation is not good.
Meanwhile, the mainstream media (MSM) is urging American citizens not to worry too much about inflation, conjuring up theories of a meme economy. But Americans seem very concerned about rising inflation, with a recent Civicscience poll showing that 77% of American citizens are concerned about rising inflation. A citizen science survey of approximately 2,600 respondents living in the United States. The survey shows that the younger generation of Americans is more concerned about inflation.
Americans aged 18-24 were very concerned about inflation, about 50% of participants aged 25-34 were also very concerned, and 48% of participants aged 35-54 were also very concerned. The survey found that the baby boomer generation (born between 1946 and 1964) were the least concerned, with only 37% of respondents in this age group being very concerned. Civicscience researchers also found in the survey that Americans are more sensitive to the idea of inflation.
Of course, those whose hours or wages were reduced as a result of the pandemic are the most sensitive to the idea of inflation and what it means for the overall cost of living. If it’s hard enough to make ends meet now, imagine how difficult it could become once inflation subsides, say the authors of Citizen Science.
Economists agree, commodity prices point to rising inflation, online surveys show US inflation is terminal
The financial news publication Zerohedge recently reported a measurement showing that inflation fears are at their highest levels in 100 years. Zerohedge also notes that the term inflation is now the subject of a panic search on the internet, with data from Google Trends (GT) showing a huge increase in searches about inflation. For the last week of February, the inflation survey based on GT data yielded a score of 100, the highest score given by GT for the periods examined.
Average Americans aren’t the only ones worried about rising inflation. While Fed members think inflation will slow next year, Manoj Pradhan, former managing director of Morgan Stanley, thinks inflation will really start to boil. Pradhan has defined this view using data from the Phillips curve, a data set that measures rising inflation and unemployment statistics.
Inflation is already rising in 2021 for raw materials and staples like food and wood, but Pradhan thinks the real burning will begin next year. The real challenge will come in 2022, when most spending goes to goods or housing, monetary aggregates are still high and the growth rate is rising, the former Morgan Stanley economist said.
In another post, the New York Times (NY Times) tries to say that there are few signs of a big price increase, but the author also notes that inflation fears are gripping the bond market. In addition, some economists and bond investors are concerned that President Biden’s policies could lead to inflation, the NYT writer adds.
News for the MSM calls fear the bogeyman of inflation, but others say financial markets are obsessed with theissue.
Other writers on the MSM, such as those in the Financial Times (FT), cite inflation as a problem. But despite what the mainstream media, status quo economists and Fed members say, Americans are indeed concerned about fears of rising prices for goods and services.
Consumer behavior has already changed dramatically and several other studies show that everyone is thinking about inflation. Financial markets are obsessed with inflation, Alex Tanzi, a columnist at the Seattle Times, wrote two days ago. Meanwhile, construction companies in the United States are struggling to keep up with inflation in the lumber market.
Our local lumberjack: Prices have been rising so fast lately that we can’t give exact figures. So we switched to WEEKLY offers. If you are a contractor and need a quote for your client, this wood quote is only valid for one more week. I’m sorry.
Federal: Inflation at 2.2
– Bruce Fenton (@brucefenton) 18. March 2021
Timber prices were so unstable that contractors suspended some projects. A recent survey by Yahoo Finance also found that 17 major food companies are warning of inflation. Prices of goods and services are rising, and officials can’t hide inflation for long.
Yet bureaucrats, the mainstream media and central bankers continue to claim that inflation will not be a problem. But Americans and citizens of the world in other mass-market countries are concerned about this price increase here and now.
This fear has led to a boom in safe havens such as precious metals and cryptocurrencies. As with gold bugs, many cryptocurrency enthusiasts truly believe that holding dollars is riskier than holding cryptocurrencies.
How about fears of rising inflation in the US? Let us know what you think in the comments below.
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