Home Economy Analysts: US Economy At Risk If Inflation Remains High

Analysts: US Economy At Risk If Inflation Remains High


If the expected jump in inflationwhich some experts predict will rise to 14-year historic highsisn’t temporary, the US economic rebound could be seriously at risk. 

A recent analysis from S&P Global Market Intelligence notes that rising inflation could upset the bond and equity markets and negatively impact consumer spending.  The Fed tends to prefer measuring inflation by the core personal consumption expenditure price index, which hit 1.8% in March 2021, up from 1.4% in February. S&P Global analysts noted that earlier this month, Goldman Sachs economists predicted core PCE to push higher than 2.4% in April, the biggest year-over-year increase since February 2007.

While “the Federal Reserve is betting heavily that the stay at these heights will be brief,” the S&P Global report notes, “if this substantial jump is not temporary, or ‘transitory’ as Fed Chairman Jerome Powell has frequently said, the consequences could be direClick here for full article…