Treasury Secretary Yellen, We Will Have to Put Up With Inflation a While Longer

Posted originally on the conservative tree house on April 22, 2022 | Sundance

The Biden administration is desperate to get to June when they can start to cycle through the anniversary of the 2021 inflation spike beginning and start to see annual inflation comparisons level off.  The rate of inflation will drop once the statistical year-over-year comparisons reach the same moment in the prior year.  The fed will raise interest rates in May and then use the June inflation rate decline as a false talking point to highlight how their policy is working.  They wait for May, because they need to wait for the calendar, nothing else.  Inflation is measured as the percentage of change from the prior year.  By waiting until the inflation is measured against the first wave of rising prices, it will give the illusion of a decline in inflation.

That’s the unspoken background behind Janet Yellen’s statements to CNBC where she says, “We’ll have to put up with inflation a while longer.”  It’s all about kicking-the-can until the statistical comparisons lessen, nothing more.  WATCH:

When we reviewed the last inflation report at 8.5% we noted, “We will need to watch the service side closely now to see if consumers start to lessen travel, entertainment, and other service side expenses.”  We are starting to get the first signals of serious trouble on the service side now.

(USNews) – […] S&P Global said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to a reading of 55.1 this month from 57.7 in March. That reflected a moderation in activity in the vast services sector.

[…] With price pressures mounting, business sentiment slipped to a six-month low in April. The ebb in sentiment was across the manufacturing and services industries.

The survey’s flash services sector PMI fell to a reading of 54.7 from 58.0 in March. Economists had forecast an unchanged reading this month for the services sector, which makes up more than two-thirds of U.S. economic activity. (read more)

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