Treasury Secretary Janet Yellen said we haven’t experienced current inflation levels in a “long time.” However, she doesn’t think they’re coming down soon. In fact, she insists inflation will persist until the middle of next year. Officials are warning that won’t be the only issue to last until 2022. Transportation Secretary Pete Buttigieg says we’ll still be having supply chain issues. In other news, these worries are helping give gold a boost. Kitco News reports the yellow metal price jumped early Monday morning.

 

CNN Politics/Cameron Cawthorne
Inflation to fall to acceptable levels in second half of 2022, Treasury secretary says

US inflation levels are not expected to decrease to acceptable levels until the latter part of 2022, Treasury Secretary Janet Yellen said Sunday.

The prediction comes as rising prices strain Americans’ wallets at grocery stores and fuel pumps amid high energy demand, already exacerbated by the coronavirus pandemic wreaking havoc on the economy. Asked when she expects inflation — which was 5.4% at the end of September — to get back to the 2% range considered acceptable, Yellen told CNN’s Jake Tapper that it would be the middle to second half of 2022.

“Well, I expect that to happen next year. Monthly rates of inflation have already fallen substantially from the very high rates that we saw in the spring and early summer,” she said on “State of the Union.” “On a 12-month basis, the inflation rate will remain high into next year because of what’s already happened. But I expect improvement … by the middle to end of next year, second half of next year.”

You can read the entire story, here.

 

Kitco News/Jim Wyckoff
Gold price up as it appears inflation genie out of the bottle

Gold prices are moderately higher in early U.S. trading Monday, supported by increasing worries about problematic price inflation. More and more economists and veteran market watchers are saying the bout of rising global inflation is something more than just transitory. December gold futures were last up $6.50 at $1,802.70. December Comex silver was last up $0.011 at $24.465 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. It’s another big week for U.S. corporate earnings, which have generally been very positive and are helping push the indexes solidly higher from their early October lows. For the moment the upbeat earnings reports are overshadowing worries about “stagflation,” which means rising prices and stagnant global economic growth. The mainstream media has recently highlighted the shipping bottlenecks, especially on the U.S. west coast.

You can read the full story, here.

 

Fox Business
Investment manager warns ‘we are tiptoeing on a recession’

Louis Navellier, the founder and CEO of Navellier & Associates, weighs in on how inflation will impact consumer spending, arguing that as food and energy ‘take more money out of your pocketbook, it’s going to hurt the rest of the economy.’

Watch the full interview, here.

 

 

 

 

 

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