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DiewConklan
Bloomberg Television
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Comments by "DiewConklan" (@hRt42kuo7jTtmk14) on "Fed May Grapple With Stagflation: Quill Intelligence" video.
All these predictions of scenarios for stagflation, hyperinflation, and deflation are now suddenly brewing and trying to say the current inflation situation will change. None of these alternative narratives make any logical sense though. This woman is saying that the cause of stagflation will be basically a drop in tax refund payments in January and a possible increase in production of new cars because GM is adding a shift? Wow, people really are truly desperate for something to talk about just to fill the airwaves, but sadly none of these small events are significant enough to change the trajectory of the economy. Im still going with the current inflationary scenario, which means it continues on the same trajectory. A hyperinflation scenario (20% inflation) is also too extreme, thus it will remain somewhere between 5% and 10% (runaway inflation) until the fed raises interest rates a fair amount to stop it and which will require far more than the 3 rate increases they are now projecting for next year. And deflation? Forget it. Deflation would only make sense in a situation when interest rates are already high, nobody has any money to spend, and an economy is stagnating. Right now none of that is the case in the USA.
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