Tuesday Topic: Is Inflation Spike Transitory?

I got my first mortgage loan in the 1990's and it was around 8% (a great rate).  Interest rates have been so low for 20+ years.  The US Dollar and financial system could be heading for a collapse.  Defying the basic laws of economics is like trying to defy the laws of gravity; sure you can for a while, but you are pulled back to earth when you run out of fuel.  The law of supply and demand applies to the US dollar.  We have printed a ton of money to inject liquidity into the financial system (supply).  The demand for the US dollar has not adjusted as quickly as the current supply.  I do not understand how the government can publish inflation, unemployment, job creation, etc. statistics, reflective of the overall economy without disclosing their estimates or having such statistics audited.  Individual publicly-traded companies must disclose their estimates and must have an independent audit.  Why do people trust key economic metrics from those who are dictating the policy with no checks and balances?

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Matt Johnson
CFO
Premier Bank
Omaha, NE
Posts reflect my personal opinion and do not represent any organization in which I am affiliated.
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Original Message:
Sent: 06-14-2021 10:03
From: Barb Rehm
Subject: Tuesday Topic: Is Inflation Spike Transitory?

Inflation speculation is everywhere these days, after consumer prices jumped more than expected over the last two months. Fed officials insist they have everything under control, that this bout of inflation is "transitory," and once supply catches up with demand prices will recede. The FOMC meets this week, and The Wall Street Journal on Monday reported that higher inflation may force the Fed to raise interest rates sooner than expected.

What do you think? Do you think the Fed is taking inflation seriously enough? When do you expect rates to rise? If you're unsure, this Bloomberg article lays out the factors to consider and what they are indicating today.

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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