Analysis: Inflation is back. Biden should be worried – By Matt Egan (CNN Business) / May 25 2021
New York (CNN Business) It’s time to sound the inflation alarm inside the White House.
From used cars and gasoline to lumber and food, prices are surging. The return of inflation, after a decades-long absence, is squeezing families and businesses recovering from the pandemic.
In many ways, higher prices can be seen as evidence that President Joe Biden’s economic and health policies are working. The successful rollout of vaccines is allowing companies to reopen and Americans to resume traveling, spending and working. Growth is being turbo-charged by rock-bottom interest rates and unprecedented fiscal stimulus.
I pray the Fed will be right. I hope it’s transitory. It’s not clear it will be.” FORMER DALLAS FED PRESIDENT RICHARD FISHER
For many years, the nightmare for the US economy was a Japanese-style spiral of falling prices. Now, the risk for the White House is an economy that overheats, forcing the Federal Reserve to cool it down by raising interest rates so aggressively that it short-circuits the Biden boom, both on Main Street and Wall Street.
CONTINUE > https://www.cnn.com/2021/05/25/business/inflation-economic-growth-biden/index.html
