The entire Sloe Joe administration is getting everything wrong!!!
The Fed got inflation badly wrong — and now it admits there’s no quick fixHigher prices of gas, groceries, new cars and mortgage rates got you down? Americans may have to get used to it. The rate of inflation might not return to pre-pandemic levels of less than 2% for at least another three years.
That’s the blunt message the Federal Reserve delivered on Wednesday. For the first time since 2007, the central bank predicted inflation would end the year above 3% — in fact, well above that level.
The Fed estimated the rate of U.S. inflation, using its favorite PCE price index, would average a whopping 4.3% in 2022.
That’s up from the bank’s 2.6% estimate four months ago and just 1.9% a year earlier. These are earthquake-like alterations for a conservative central bank that rarely make big changes in its forecasts.
It may have had no choice, economists say.
The yearly increase in the cost of living has soared to a 40-year high of 7.9% based on the better known consumer price index. The PCE index has climbed a somewhat lesser 6.1% in the most recent 12-month span.
Faced with the first serious threat of high inflation since the early 1980s, the Fed on Wednesday raised a key short-term interest rate for the first time in four years. It also forecast a higher-than-expected series of rate increases in 2023.
These moves are likely to slow U.S. growth and retard demand as part of the strategy to rebalance an off-kilter economy......
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The central bank turned out to be dead wrong.Prices rose even faster and spread from just a smattering of goods and services to almost everything.
Not only that, but the cost of labor surged to the highest level in decades and raised the specter of a wage-price spiral, the likes of which the U.S. hasn’t seen since the 1970s. ................
https://www.marketwatch.com/story/the-fed-got-inflation-badly-wrong-and-now-it-admits-theres-no-quick-fix-11647464269?mod=home-page
