Joe’s Disinflation Isn’t Sexy

Even at a “lower” 5% inflation rate today, “the price is still wrong” for citizens, says WSJ, while the nation’s economists “turn more pessimistic” about chances of taming the silent killer without triggering recession.

As for the “pessimistic” turn by economists, a 5% inflation rate will do that since anyone with a brain let alone a diploma can see how it eats away a people’s paychecks & businesses’ profits. Even the Federal Reserve Board, the paper’s story presumes, isn’t stupid & that “persistent inflation will keep interest rates elevated and [therefore] recession risk high.”

Not that the surveyed economists aren’t seeing improvement in the surprisingly “resilient” economy. Or, that the president didn’t try to take “credit” for nearly halving January’s 9.1% inflation rate HE TRIGGERED through massive spending initiatives (Covid relief, War on Fossil Fuels, Endless Green Subsidies to force an epic conversion in 1 year’s time, etc). It’s just that the ongoing inflation is also more “stubborn” than expected just a few months ago. As a result, “On average, economists [now] expect inflation … to end this year at 3.53%, up from 3.1% in the January survey.” Moreover, “most economists [now] see no rate cut” by the Fed before 2024.” As the WSJ editorial board had noted in an earlier op ed: “This is the real inflation story: A price level that rises 5% instead of 9.1% isn’t deflation. It is disinflation, which means prices are still rising, only not as fast as they were. The overall standard of living is lower & Americans are still paying more for nearly everything.”

Davd Soul