Jay Powell: “The Fed’s policies absolutely do not add to wealth inequality”.
Powell has no credibility. None. https://t.co/lL7HgzWHt3
— Sven Henrich (@NorthmanTrader) September 15, 2020
So the Fed is pursuing a new inflationary strategy even though inflation is a tax on wages & real purchasing power for households. Oh, but it leads to negative real interest rates, a boon to equity investors & stimulates borrowing in an economy already up to its eyeballs in debt.
— David Rosenberg (@EconguyRosie) September 15, 2020
U.S. Cost of Living Is Higher Than Official Inflation Rate Shows
If the costs of living these days seems to be rising faster than the official 1.3% inflation rate, there’s a reason.
The annual inflation rate for Covid-connected purchases is 1.85%, or a half percentage point higher than the Consumer Price Index, according according to Harvard Business School professor Alberto Cavallo.
Prices of such goods as groceries and paper towels that have been flying off the shelves during the pandemic are experiencing higher inflation compared with the costs of some less-popular purchases such as gasoline, he said.