News about inflation

Please see my latest essay on monetary policy and inflation www.minneapolisfed.org/article/2024/policy-has-tightened-a-lot-how-tight-is-it-an-update

"Let’s hope the Fed’s inflation confidence isn’t as transitory as it was in 2021." From the @WSJ editorial. "Jerome Powell Isn’t Too Worried About #Inflation: The Fed Chairman offers a sunny view about prices and the #economy." #markets #federalreserve #centralbanks #econtwitter

From 2000 to 2023, the US Federal Government increased spending by 243% versus an 83% increase in overall inflation (CPI). That's an annualized increase in spending of 5.3% per year, more than double the 2.5% annualized increase in CPI. Video: www.youtube.com/watch?v=2v289FtXyeg&t=367s pic.twitter.com/hJjwzPEOjg

The longer the #Fed keeps interest rates at current levels the larger federal budget deficits grow. Rising deficit spending adds to the upward pressure on consumer prices. This pressure will increase when rising deficits lead to a weaker dollar. Higher rates = higher #inflation.