Inflation nation: Experts warn that rising prices are here to stay
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Experts and investors warned that inflation is likely to plague the United States in the years to come, despite assurances from President Biden and Fed Chairman Jerome Powell that it is temporary, or about to decline next year.
Powell said in March that he expects inflation to remain high through the middle of the year, but that he will “fall sharply” next year.
Over the past year, this sentiment has been repeated by members of the media, who downplayed the effects of inflation on Americans.
In November, MSNBC’s Stephanie Ruhle downplayed the inflation issue, saying that while “no one likes to play anymore,” “on average we have the money to do so.” Another MSNBC host, Mehdi Hasan, criticized the “inflation obsession” that month for their opposition to the comprehensive Build Back Better program, which he claimed would lower it.
A gas pump shows current fuel prices, along with a sticker by President Joe Biden, at a gas station in Arlington, Virginia, March 16, 2022.
(Photo by SAUL LOEB / AFP via Getty Images)
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 is now commonly called Team Transitory and Team Persistent Team Transitory, myself included, has claimed that we are looking at a temporary blip – even if it lasts longer than we first expected, but others warn that we may face something comparable to stagflation in the 1970s. for credit: So far, warnings about inflation have proven to be correct, while Team Transitory’s predictions that inflation would fade quickly have been wrong. “
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Four months later, Krugman admitted in another column that although a temporary improvement was pending, inflation was a problem that did not go away soon.
The notion that inflation is only temporary does not seem to be part of a broad media narrative anymore, as persistently high prices have gripped the United States for several months.
President Biden, Press Secretary Jen Psaki and US Treasury Secretary Janet Yellen all indicated last year that inflation would be temporary.
Now it’s such a part of American life, it’s food for humor. Biden was seen laughing Saturday at the White House correspondent’s dinner when cartoonist Trevor Noah joked that he did not understand why the president received so much criticism, since everything is “up” under him.
“You know, I think ever since you came to the office, things have really gone up. Gas is up. Rent is up. Food is up. Everything,” Noah said.
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Biden laughed this time, but it has been a sore place in the past. Asked by Fox News’ Peter Doocy in January whether inflation would be a political responsibility before the 2022 interim period, Biden mumbled sarcastically that it would be a “great resource”, adding: “For a stupid son of a b– -h. “
US President Joe Biden Speaks at the Annual White House Correspondents’ Association Dinner in Washington, DC, April 30, 2022. REUTERS / Al Drago
Billionaire investor David Rubenstein; said, however, that Americans should be concerned about inflation.
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“Inflation, as we all know, once 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 couple of years,” Rubenstein told Fox News Digital at The Milken Institute’s Global Conference 2022.
“So now I do not think the inflation rate this year will be what it was last month or so. I do not think we will have 8% annual inflation rate, but I suspect that something around 5% is probably not unlikely, maybe even 6 %, “he added.
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The Milken Institute’s chief economist Bill Lee predicted inflation would be “well above 3.5%” over the next five years, after which he said it would begin to decline.
This could have drastic implications for Americans across the country.
“One of the things we’re seen is that inflation has, you know, very direct effects on Americans, on American families and businesses,” Phillip Swagel, director of the Congressional Budget Office, told Fox News Digital. “It also has implications for the implications for the budget. For American families, the high inflation that we have seen the highest in decades has meant higher prices for food, for travel, for gasoline. This means that family incomes do not go that far. Family budgets are stretched . “
Fox News’ David Rutz contributed to this report.
