With inflation looming, consumers are already beginning to feel price increases hitting their pocketbooks. Federal Reserve chief Jerome Powell has been dismissive of such concerns, even as his refusal to consider raising interest rates is increasing the risk of inflation and a nasty economic landing afterward. And, as always, it will be everyday people who bear the brunt of the financial fallout.
Over the past year, gasoline prices have increased by 9% and food prices by 3.5%. Building materials such as lumber and copper have gone through the roof, and restaurant prices are strongly on the rise. At the same time, unhealthy equity and housing bubbles are forming, and there are growing indications that the U.S. economy could overheat by year-end. Still, Powell keeps repeating that the Fed is “not even thinking about thinking about raising interest rates.”
