oldtimer
Sr. Member
Posts: 3,283
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« on: June 04, 2023, 09:42:34 PM » |
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Inflation should continue to fall Year-on-Year until July to about 4% and then probably goes up a bit to 5% in the second half of the year.
You can see that inflationary pressures are up a bit since last Autumn, and Bitcoins and Tech Stocks are also way up since then, while interest rates have dropped a bit since their October peak.
Student loan payments resuming might take some money out of the overheated economy, but the impact won't be felt for about a year at least.
The FED has really lost control of the economy, everytime they try to increase interest rates the Biden Administration increases spending, so the economy remains overheated.
3% unemployment and 6% inflation might become the norm until something breaks.
The interesting thing is that the Government can keep running large deficits because nominal GDP will rise rapidly due to the inflation caused by the deficits.
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