Biden’s inflation danger

Axios/Dion Rabouin

cartoon showing a broken down tow truch pulling a disable economy

“President-elect Joe Biden’s $1.9 trillion stimulus proposal has economists and bullish market analysts revising their U.S. growth expectations higher, predicting a reflation of the economy in 2021 and possibly more booming returns for risk assets. Yes, but: Others are warning that what’s expected to be reflation could actually show up as inflation, a much less welcome phenomenon.”

USAGOLD note:  Former Fed economist DiMartino Booth is quoted as saying that the Fed might be careful saying it wants inflation. “Once the genie gets let out of the bottle,” she says, “the Fed’s not going to have a say in where inflation goes and I don’t think policymakers understand that.”

Repost from 1-21-2021

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