Fed Chairman says economic reopening could cause inflation to rise temporarily

Perhaps the best thing would've been quantitative easing with required guaranteed govt backed loans for anyone unable to meet rent or mortgage or utility payments.

Loans are forgotten if you fail to meet minimum income thresholds (i.e. you can put in forbearance until your income is above say $70k) if your income does't rise about that in ten years, congratulations you're free and clear and the government eats it.

Figure out some list of "necessities" bring your bills and get monthly loan disbursements for those amounts.

Or another option prop the banks but REQUIRE them to prop up landlords but ONLY if they prop up tenants who cannot pay and do the same for utlities, cell phone providers, internet.

That would've ensured a smoother way of essentially "pausing" where you're at, so we can lockdown and "reboot" the system. Basically.

Though I'm all for a UBI as I've been out of work for awhile myself as a freelance dev and am feeling the noose of despair tighten.

Quantitative easing doesn't generally cause inflation in my opinion. All it does is increases bank reserves which is why 10 years into endless qe, inflation is very muted.

The reason they are finally expecting inflation now is that they are going into policy measures on the fiscal side that actually enter the real economy, not just qe. Imo one dollar of fiscal expenditure has the power of at least $10 of qe if not actually more like an infinite multiplier in the case that qe does literally nothing.

If you are interested I. This kind of stuff search YouTube for Jeff snider or Lacy Hunt. Both of them are really fascinating to listen to and have a strong conviction that qe is totally ineffective.

Which went straight to banks and inflated assets prices which benefits almost exclusively the wealthy and big business. American taxpayers got looted for cash that went straight to banks, Boeing & friends and big business.

The media is complicit because they sure aren't reporting on the actions of the Fed nor the stimulus bills which are 75%+ pork and corporate welfare, with a $1,400 crumb going out to basically nobody.

Larry Summers is a fool and history has shown you shouldn’t listen to him.

Yes. This is another way of saying, 'recovery.' It's a little buried because of the writer's insistence on micro-quoting Powell. But the overall message Powell is sending is that 2020 prices were depressed and that we will see a correction in the short term.

Prices for a lot of goods -- gas, travel, hotel, etc -- have been in the dumps since COVID. It should be expected that prices on these goods will rise as the country opens up.

There will probably be a good deal of pressure on labor prices as well. I suspect that many people in the hospitality and service industries have changed careers rather than sit around indefinitely waiting for a 'reopening'.

The velocity of money has a lot to do with inflation. How many times per year is a given dollar spent?

The assumption is that as the pandemic ends that this velocity measurement will increase, that people will be out buying and selling things a lot more than they have been for the last year.

The size of the money supply was increased significantly over the last year, due to the trillions in federal stimulus injected into the economy. This was done presumably to prevent many businesses and households from becoming financially insolvent. This is also considered to be inflationary.