While Some Things May Be "Transitory" - Inflation Doesn't Look Like it Is One of Them

The inflationary trends should be no surprise based on basic economic laws of supply and demand.  In response to COVID, the government created a large supply of liquidity.  Looking at many banks' call reports, the amount of cash in the system is shocking.  The government's interventions in response to COVID will have broader economic impacts beyond inflation.  In addition to the supply of cash, money has been very cheap for almost two decades.  I remember buying my first house in the late 1990's and getting a great mortgage rate of 8%.  It will be interesting to see how economic laws respond as the inflationary metrics are likely an early warning sign of broader, more pervasive issues to come.

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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: 11-10-2021 10:41
From: Neil Stanley
Subject: While Some Things May Be "Transitory" - Inflation Doesn't Look Like it Is One of Them

United States Inflation Rate (tradingeconomics.com)

US Inflation Rate Rises to 6.2%, More than Expected

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Neil Stanley
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