How Will The Fed Deal With This Latest Bout Of Inflation?

Powell is not alone. Fed officials across the board have referred to inflation as “transitory” stating that even if inflation rises above the Fed’s target of 2% (say to 2.75% or even 3%), it’s not a big deal.

Bear in mind, inflation is already well over 3% now.

So, what does this mean?

The Fed will continue to keep interest rates at zero while printing $125 billion per month all while ignoring the countless signals that inflation is already spiraling out of control. Yes, the Fed will eventually be forced to act once inflation becomes a political issue, but until then the Fed will have its “blinders” on.

Which means… inflation is going to rage and rage.

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