Democrats Are In Denial About Inflation Kevin Hassett

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Kevin Hassett's Inflation Warning: Are We Headed for a 1970s Repeat?

Understanding Kevin Hassett's Concerns

Kevin Hassett, former Chairman of the White House Council of Economic Advisers, has expressed concerns about the current inflation rate, fearing it could lead to a repeat of the inflationary conditions seen in the 1970s.

According to Hassett, the Federal Reserve's ongoing efforts to combat inflation are facing challenges, and fissures are forming in the economy.

Evidence of Inflationary Pressures

• Wednesdays inflation report indicates a 7% increase in consumer prices over the past year.
• Markets appear to be pricing in higher inflation expectations.
• Affordability concerns are rising.

How the 1970s Inflation Comparatively

The 1970s witnessed a period of high inflation, primarily driven by factors such as the OPEC oil embargo, government spending, and monetary expansion.

Hassett believes that while some similarities exist between the current situation and the 1970s, such as supply chain disruptions and a potential energy crisis, the Federal Reserve has learned from the past and is better equipped to address inflation.

Policy Differences Between Past and Present

The Federal Reserve has shifted its focus from controlling the money supply to targeting an inflation rate of 2%.

Additionally, the Federal Reserve is now implementing a tighter monetary policy to curb inflation.

Conclusion

While concerns about the current inflation rate are valid, it is important to note that the Federal Reserve is taking steps to address the issue.

Whether we will face a repeat of the 1970s inflation remains to be seen, but the current situation warrants close monitoring and proactive measures to mitigate inflationary pressures.

For more information:

1. Kevin Hassett: The Markets Are Pricing in 70s-Style Inflation
2. Fissures Are Forming in U.S. Economy Just as U.S. Federal Reserve Launches Long-Running Fight Against Inflation

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