That's quite something: Larry Summers shows that if the US had kept calculating CPI in the same way as in the 1970s, inflation last year reached 18%, even higher than at the peak of the 1970s "Great Inflation" crisis. https://t.co/B0CNakp4wJ

— Arnaud Bertrand (@RnaudBertrand) March 18, 2024

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Treasury secretary concedes she was wrong on 'path that inflation would take'

US Treasury Secretary Janet Yellen admitted Tuesday that she had failed to anticipate how long high inflation would continue to plague American consumers as the Biden administration works to contain a mounting political liability.

"I think I was wrong then about the path that inflation would take," Yellen told CNN's Wolf Blitzer on "The Situation Room" when asked about her comments from 2021 that inflation posed only a "small risk."

The admission was the latest indication that the administration's expectations of a normalizing economy were thrown into disarray by the continuing pandemic and the war in Europe.

"As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn't at the time didn't fully understand, but we recognize that now," she said.

Yellen and other White House officials once framed inflation as a temporary side effect of the economy returning to normal following the pandemic, pointing to snags in supply chains and demand outstripping supply.

Yet months later, inflation is running at a near-four-decade high.


https://www.cnn.com/2022/05/31/politics/treasury-secretary-janet-yellen-inflation-cnntv/index.html

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Mongolian Christmas said:

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OP tried to carry the water but spilled it all over himself.

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Oldag2020 said:

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Bump

https://www.cnbc.com/amp/2023/12/13/fed-lowers-inflation-forecast-for-2024-seeing-core-pce-falling-to-2point4percent.html

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txaggie_08 said:

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Oldag2020 said:

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Bump

https://www.cnbc.com/amp/2023/12/13/fed-lowers-inflation-forecast-for-2024-seeing-core-pce-falling-to-2point4percent.html

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https://tenor.com/view/clown-gif-23405913

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ProgN said:

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Oldag2020 said:

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Bump

https://www.cnbc.com/amp/2023/12/13/fed-lowers-inflation-forecast-for-2024-seeing-core-pce-falling-to-2point4percent.html

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Just wow! You actually bumped a thread almost 3 years later that made you look even more foolish? I seriously doubt anyone that can walk upright would think that almost 3 years equals "transitory" with regard to anything.

Ok, please opine on this Mr. Wizard. Why are grocery prices crippling the middle and lower class? Why are corporations providing negative forward guidance and announcing layoffs? Why are credit card and auto loan delinquencies rapidly rising? Why are rental rates in crappy apartments equal or higher than a starter home mortgage from just a few years back? Why are countries dumping our debt instead of buying it? Why are credit agencies putting us on notice before they downgrade our credit rating?

Your OP said to not worry about our out of control spending and we'd have Skittles in every bowl and unicorn rainbow fart scented candles.

You'd have been better to just let this embarrassing thread die, but no, you couldn't live with your own failure. I'm confident that you're the most intelligent barista at your Starbucks, but F16 is not the place to shovel your bull*****

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The consumer price index accelerated at a faster than expected pace in March, pushing inflation higher and likely dashing hopes that Federal Reserve will be able to cut interest rates anytime soon.

The CPI, a broad measure of goods and services costs across the economy, rose 0.4% for the month, putting the 12-month inflation rate at 3.5%, or 0.3 percentage point higher than in February, the Labor Department's Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones had been looking for a 0.3% gain and a 3.4% year-over-year level.

Excluding volatile food and energy components, core CPI also accelerated 0.4% on a monthly basis while rising 3.8% from a year ago, compared to respective estimates for 0.3% and 3.7%.

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Stock market futures slumped following the report while Treasury yields spiked higher.
Shelter and energy costs drove the increase on the all-items index.
Energy rose 1.1% after increasing 2.3% in February, while shelter costs, which make up about one-third of the weighting in the CPI, were higher by 0.4% on the month and up 5.7% from a year ago. Expectations for shelter-related costs to decelerate through the year have been central to the Fed's thesis that inflation will cool enough to allow for interest rate cuts.
Food prices increased just 0.1% on the month and were up 2.2% on a year-over-year basis. There were some big gains within the food category, however.

The measure for meat, fish, poultry and eggs climbed 0.9%, pushed by a 4.6% jump in egg prices. Butter fell 5% and cereal and bakery products declined by 0.9%. Food away from home increased 0.3%.

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Oldag2020 said:

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Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.

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DrEvazanPhD said:

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This OP may be dumber than the Two Teas theory

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Ags4DaWin said:

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Everyone said that about this sort of monetary policy.

And then Greece happened. Remember that?

We have been sheltered because the dollar has been the reserve currency for so long.

When interest payments on government debt are so large we are struggling to borrow to cover them- which is around the corner.
When our adversaries overseas find it advantageous to follow through on threats of conducting oil transactions in other currencies.
When oil is no longer in as high demand because of EV's that tying oil value to the dollar is not as meaningful.

Things will shift quickly.

How many of these factors are already in motion?

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Ellis Wyatt said:

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Where did the idiot go? Or is he just a liar?

I'm betting he works for the federal government or an NGO.

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DrEvazanPhD said:

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I wonder who the 15 who starred the OP were

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