Another grim prediction today:
Inflation predicted to possibly be 15% in 2022. Not good.
"Employers will therefore have to increase wages for less desirable jobs. These increases could hit the "unprecedented" double-digit mark. Combine that with all the other inflationary pressures, an energy crisis, and supply chain disruption, and suddenly things spin out of control.
In such a scenario, the Federal Reserve will try to react, says Demik. "But this is already too late. It has lost credibility." Saxo Bank says U.S. inflation could go above 15% before 2023."
WASHINGTON — In a fresh sign of his growing concerns about inflation, Chair Jerome Powell said Wednesday that the Federal Reserve can’t be sure that price increases will slow in the second half of next year as many economists expect.
In the past, Powell, who was nominated last week to a second four-year term by President Joe Biden, has frequently expressed his belief that these supply-and-demand imbalances should fade as the pandemic eases, which would reduce inflation. But on Wednesday, he said that while such an outcome is “likely,” it is only a forecast.
“The point is, we can’t act as if we’re sure of that,” he said. “We’re not at all sure of that. Inflation has been more persistent and higher than we’ve expected.”
On Tuesday, Powell said he was ready to “retire” the use of the word “transitory” to describe inflation. Instead, he said the “risk of higher inflation has increased.”
Wow, way to go Joe Biden and Kamala Harris. Just drive the car off the cliff.