Inflation Nation: Experts warn rising prices are here to stay
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Pundits and investors have warned that inflation is likely to plague the United States in coming years, despite assurances from President Biden and Fed Chairman Jerome Powell that it is transitory or on its way to decrease next year.
Powell said in March that he expected inflation to remain high until the middle of the year, but to “fall more sharply” next year.
Over the past year, that sentiment has been echoed by members of the media, who have downplayed the effects of inflation on Americans.
In November, MSNBC’s Stephanie Ruhle downplayed the inflation problem, saying “nobody likes to gamble anymore”, “on average we have the money to do it”. Another MSNBC host, Mehdi Hasan, slammed “inflation obsessives” that month for their opposition to the sprawling Build Back Better program which he said would shrink it.
In December, New York Times columnist Paul Krugman admitted that he had been on “Team Transitory” and had so far been proven wrong, writing: “Mainstream economists are currently divided between what are now widely referred to as Team Transitory and Team Persistent. Team Transitory, myself included, has argued that we are witnessing a temporary anomaly – albeit longer than expected. Others, however, warn that we may be facing something akin to the stagflation of the 1970s. the inflation warnings came true, while Team Transitory’s predictions that inflation would fade quickly turned out to be wrong.”
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Four months later, Krugman admitted in another column that while a temporary improvement was in sight, inflation was a problem that wasn’t going away anytime soon.
The idea that inflation is only transitory no longer seems to be part of a larger media narrative, as persistently high prices have gripped the United States for months.
President Biden, press secretary Jen Psaki and US Treasury Secretary Janet Yellen all suggested last year that inflation would be temporary.
Now, it’s such a part of American life, it’s fodder for humor. Biden was spotted laughing at the White House Correspondents’ Dinner on Saturday when comedian Trevor Noah joked that he didn’t understand why the president had received so much criticism, because underneath him everything is “in place. “.
“You know, I think since you took office, things are really looking up. Gas is up. Rent is up. Food is up. Everything,” Noah said.
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Biden laughed this time, but it was previously a sore point. Asked by Fox News’ Peter Doocy in January if inflation would be a political handicap ahead of the 2022 midterm elections, Biden sarcastically muttered that it would be a “great asset,” before adding, “What a stupid son of a whore. “
billionaire investor David Rubenstein; however, said Americans should be worried about inflation.
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“Inflation, as we all know, when it gets into the system, it’s very difficult to get it out. It takes a long time to get it out, it can take a few years,” Rubenstein told Fox News. Digital at the Milken Institute. World Conference 2022.
“So now I don’t think the inflation rate this year will be what it was about last month. I don’t think we’ll have an 8% annualized inflation rate, but I suspect something around 5% is probably not unlikely, maybe even 6%,” he added.
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Milken Institute chief economist Bill Lee predicted inflation would be “well above 3.5%” for the next five years, after which he said it would start to decline.
This could have dramatic implications for Americans across the country.
“One of the things we’ve seen is that inflation has, you know, very direct impacts on Americans, on American families and on American businesses,” said the director of the Congressional Budget Office, Phillip Swagel at Fox News Digital. “It also has implications for fiscal implications. For American families, the high inflation we’ve had the highest in decades has driven up the prices of food, travel, gasoline. That means family incomes don’t go that far Family budgets are stretched.
Fox News’ David Rutz contributed to this report.
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