Source: Simon Kent
Consumer price index data due out this week will show soaring U.S. inflation hit another four-decade high last month even as President Joe Biden claimed rising prices are more to do with malevolent outside forces than his own economic (mis)management.
The Financial Times (FT) forecasts consumer price index data available from Thursday will show a rise of 8.4 per cent year over the past 12 months based on estimates from Bloomberg, the fastest pace since 1981.
That grim news comes just days after Harvard Professor, Director of the National Economic Council under President Barack Obama, and Treasury Secretary under President Bill Clinton, Larry Summers, said recession risks also “are going way up” and he would put the odds of a recession in the next two years at above two-thirds.
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He based that on the fact there hasn’t been a time in American history where inflation was over four percent with an unemployment rate below four percent where there wasn’t a recession within two years.
While the surge in U.S. consumer prices keeps accelerating it looks like the Biden administration still lacks the means – and the political will – to tackle headline inflation. The FT explains: