When Covid struck the US.in March 2020, the economy slowed leading to a money printing bonanza by The Federal Reserve. Fast forward to today, and we see the US Core CPI (Inflation) hitting 4.2% YoY with today’s PPI Final Demand Prices YoY rising to 6.2%. It took a year to get there, but we are seeing inflation. In other words, one year after.
Is it transitory or a permanent shift above The Fed’s 2% target? Permanent if the Biden Administration continues it current insane spending plan. Transitory if the Biden Administration pares back its prodigious spending due to resistance.