Inflation in US rose by 7.5%, this is how different Economist, analyst and some government officials responded.
“””In the wake of this report, I anticipate we’ll see a return of the volatility that was prominent for much of January,”” said Brian Price, head of investment management at Commonwealth Financial Network. “”Investors should brace themselves because risk assets may be in for a bumpy ride until inflationary data begins to ease, which I expect to happen as the year progresses.””
“”What started as pandemic-specific inflation has now expanded out over many, many categories both on the products side of the economy and on the services side,”” said Kathy Bostjancic, Oxford Economics’ top U.S. finance economist. “”It reflects supply limits in both the products and labour markets, but it is also a reflection of continued high demand, notably from US consumers,”” says the report.
“”This poll is really indicating that there’s a lot of financial worry created by inflation, market volatility, and just that uncertainty coming out of the epidemic and the impact that’s had on everyone in their everyday life,”” Celeste Revelli, director of financial planning at eMoney, noted.
“”Many people are suffering as a result of rising inflation. The typical American household spends an extra $276 every month, which is a significant amount of money “”Ryan Sweet, a senior economist at Moody’s Analytics, put it this way. “”It really emphasizes the idea of ‘what is the cost of inflation?'”” says the author.
“”If consumers and employees believe that inflation will not be transitory, they will demand higher salaries, and greater inflation will become incorporated in the system,”” said John Briggs, NatWest Markets’ head of strategy for the Americas.
“”I completely understand how people are feeling. However, I am cautiously hopeful “”Dr. Michael Greiner, an economist from Oakland University, made the announcement. “”While there is a leap, the magnitude of the jump is reducing. This is just going to be a short-term issue in the long run.””
President Biden remarked in an interview that “”according to Nobel laureates, 14 of whom wrote me, and a number of corporate executives, it should be able to start to taper off as we move through this year.”” “”In the interim, I’ll do everything I can to address the major issues that are affecting most people in their homes.””
“”While we’re hoping that prices will continue to fall in the coming months,”” Jonathan Silver, CEO of Affinity Solutions, which studies customer spending habits, said, “”prices at grocery shops and restaurants may take longer to adapt downward.”” “”We’re not expected to see a complete supply chain repair until later this year or even 2023.””
“”The first miscalculation happened on November 30, when the Fed finally retired ‘transitory,'”” said Mohamed El-Erian, Allianz’s top economic advisor. “”Now, the policy mistake would be to slam on the brakes because they didn’t take their foot off the accelerator early enough,”” says the author.
“”We would clearly favour the dollar versus low yielders supported by central bankers who have firmly established themselves in the dovish camp if the Fed were to press hard on the monetary brakes,”” Chris Turner, global head of markets at ING, said.”