Part 10: The Inflation Psychology Whirlwind
Part 10: The Inflation Psychology Whirlwind Despite mounting evidence to the contrary, the Federal Reserve and Biden Administration continue to insist that inflation is “transitory.” In other words, they claim it is a temporary phenomenon caused by unique circumstances related to the economic recovery from the pandemic. So why is it important for the Federal Reserve to cling to a transitory view of rising prices when such an explanation appears increasing unrealistic? The answer is that they desperately want to avoid the adverse effects anticipated future inflation has historically had on economic activity. Therefore, the politicians in D.C. and [...]