Our current inflation rate is the highest it’s been in 31 years. While it won’t be dropping within the next few months, Chief Economist of Moody’s Analytics, Mark Zandi, believes it will be coming to an end around this time next year. On the other hand, Carl Weinberg, Chief Economist at High Frequency Economics, told CNBC’s “Squawk Box Europe” that with industrial output and GDP back to pre-pandemic levels, the U.S. economy has essentially recovered. He argued that the labor market lagging is “typical for economic recessions,” with unemployment following the 2008 global financial crisis taking around a decade to fully recover.


CNN Business/Julia Horowitz
Here’s when high inflation will come to an end

The stock market is booming, and despite uncertainty about the economy, Wall Street is confident it can keep pressing ahead. But as inflation surges, there’s also an undercurrent of anxiety about what the future holds.

Want evidence? Just look at the recent rise in gold and the US dollar.

What’s happening: Gold prices are back above $1,870 per troy ounce, their highest level in five months. The US dollar, meanwhile, is the strongest it’s been since July 2020.

“Inflation upside catalysts are clearly materializing and look unlikely to fade in the near-term,” commodities strategists at JPMorgan said in a note to clients on Monday.

Continue reading, here.


Kitco News/Jim Wyckoff
Upside price action for gold, silver as bulls buy dip

Gold and silver prices are higher in early U.S. trading Wednesday. Bulls stepped in to buy Tuesday’s dips in the metals’ prices, which is a sign of strong markets. Gold and silver as an inflation hedge remains the major bullish element in the marketplace at present. December gold was last up $12.80 at $1,866.60 and December Comex silver was last up $0.271 at $25.205 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. Focus for U.S. equities traders remains on corporate earnings, which have been upbeat. Also, holiday spending is under way and that has businesses and investors in good moods. Still, markets are pausing due to inflation worries and concerns about rising Covid-19 cases in Asia and Europe.

In overnight news, the Euro zone October consumer price index was reported up 0.8% from September and up 4.1%, year-on-year. Meantime, The U.K. reported its consumer inflation rate at up 4.2% in October, year-on-year, for the biggest rise in a decade. Those numbers are around twice as hot as the European Central Bank and Bank of England say they would like to see.

You can read the full story, here.


CNBC/Elliot Smith
Ignore ‘hysterical people’ — inflation is not here to stay, economist says

A breakdown of the latest U.S. data indicates that inflation is confined to certain sectors and will not pose a threat to the recovery, according to Carl Weinberg, chief economist at High Frequency Economics.

U.S. CPI inflation came in at an annual 6.2% in October, its steepest climb for more than 30 years.

Energy, shelter and vehicle costs led the gains, which more than wiped out the wage increases that workers received for the month.

The persistent high inflation and continuation of pressures such as supply chain bottlenecks have led many economists to question the Federal Reserve’s long-held view that the spike will be “transitory.”

However, stronger-than-expected October retail sales and industrial production figures this week have indicated that the broader economic recovery may well be on track, even as inflation drives prices skyward.

You can read the full story, here.









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