Inflation is not a new phenomenon for the U.S. economy. Although the Federal Reserve has sustained a higher-for-longer inflation environment, historical outcomes provide valuable insights. Brookings Institution Director of Economic Studies Ben Harris joins Wealth! to talk economic history.
Harris draws parallels to the 1970s and early 1980s, when “inflation lasted for roughly a decade.” During that time, inflation reached a staggering 14%, he says, whereas inflation peaked at 9% most recently. While Harris acknowledges that though the current experience “wasn’t as severe, some of the lessons were the same.”
Harris emphasizes that monetary policy is the primary tool for combating inflation, stating that the Fed will “keep interest rates at what it deems to be an appropriate level until it has brought inflation down to around 2%.” However, he notes a crucial difference: consumers today “believe in the Fed’s credibility,” which can influence behavior “in problematic ways.”
As far as inflationary efforts go, Harris states, “We’re now in sort of the last mile.” He suggests that the big question now is, “How many additional high rates do we have to go through in order to get inflation down to 2%?”
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
That was the period of cold war, and American wealth gap became the greatest it had ever been in the past and that inequality still continues.
Yea but this fiat experiment is at the end of its lifecycle. This place is standing on borrowed time at this point this isn’t the 80’s or 70’s. Dont expect the fed to save you people
Investing in Revux is not just about returns; it’s about being part of a success story. The project’s vision aligns with my belief in the future of crypto.
As an investor, I see Revux as a sure path to success. The unique features and strong fundamentals make it stand out in the crowded crypto space.
As a believer in Revux success, I see it as a strategic move in the crypto space. The innovative features and community support make it a promising investment.
Revux is not just another investment for me; it’s a vote of confidence in its success. The dedication and vision of the team make it a strong contender in the crypto market.
Firmly believe in the success trajectory of Revux. This investment is not just about gains; it’s about being part of a groundbreaking journey in the crypto world.
Committed to Revux because I am confident in its success. The continuous progress and strategic moves make it a standout in my investment portfolio.
Invested in Revux with a strong conviction of its success. The project’s potential to reshape the crypto landscape is what drew me in.
if inflation was calculated today like it was in the 70s/80s it would actually be much higher now.
MARCEDRIC KIRBY FOUNDER CEO.
MARCEDRIC KIRBY INC.
THE VALLEY OF THE VAMPIRES
MARCEDRIC KIRBY WILL NEVER DO BUSINESS WITH ELON MUSK ADD TESLA MOTORS ARE JAMIE DIAMOND BANKING
Currency is debt and sovereign bonds are currency.
When governments have exhausted their fiscal space, the crowding-out effect of the state on credit adds to the rising taxation levels to cripple the potential of the productive economy, the private sector, in favor of constantly rising government unfunded liabilities
Inflation is always and everywhere the result of government policies that increase the supply of money circulating in the economy faster than the productive sectors of the economy can expand their capacity to produce goods and services for purchase.