Skip past the menu Skip to accessibility controls

Inflation Is “Going To Be A B!#ch” To Get Under Control | Wolf Richter

Adam Taggart, Wealthion 
DEC 15, 2021

Inflation is really starting to bite.

The latest Consumer Price Index -- or CPI -- was released last week, coming out at 6.8%, the highest inflation rate the US has seen in 40 years.

Households pinched by these higher prices are asking: When will this stop?

Not anytime soon, says macro analyst Wolf Richter, who just issued a report warning that getting inflation under control from here will be a difficult and lengthy process -- especially as the process is being managed by "the most reckless Fed ever"

The Federal Reserve, whose policies created today's runaway prices, is now suddenly scrambling to put the inflation genie back into the bottle. It's accelerating it taper plans and now loudly talking of hiking rates, perhaps as soon as summer 2022.

This kind of monetary tightening in today's world, of course, threatens to crater asset prices and plunge the economy into recession.

Can the Fed somehow avoid that outcome?

Time will tell. But as Wolf predicts, the effort and complexity involved in trying to get today's inflation under control will undoubtedly "be a b!#ch".

If you like this interview – subscribe to Wealthion, it's one of the fastest-growing financial channels on YouTube.