The risk of a recession is on the horizon as the Federal Reserve prepares to meet this week.
He said on CNN that when unemployment is as low as it is, it is almost always followed by a recession. The Fed has tended to be too optimistic about inflation, and I hope they realize the seriousness of the problem.
It is more likely than not that there will be a recession within the next two years.
The path for inflation depends on the war in Ukraine and the price of oil. The US consumer prices increased 8.6% from a year earlier in May.
There is a risk that it will rise higher, and I don't think it will fall back very quickly.
As the war in Ukraine continues, there is not a lot that can be done to bring down the price of gas.
More strategic tariffs with China could help lower prices for American consumers and producers. He advocated for bipartisan legislation that would raise Trump-era tax cuts, tax corporations adequately and reduce prescription drug prices.
The storming of the U.S. Capitol by supporters of former President Donald Trump erodes the basic credibility of US institutions, which feeds through on inflation, according to former Treasury Secretary Larry Summers.
He said that if we can't trust the country's government, why should we trust its money?
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