Market discussion of inflation continues to heat up, even though the Federal Reserve Board (Fed) officials have repeatedly expressed the view that inflation is only temporary, some market strategists believe that the Fed has underestimated the problem of inflation, the U.S. inflation rate may rise to 3%-4% in the middle of next year.
Investment company Independent Strategy President David Roche said Wednesday (21), the U.S. inflation rate may reach 3% or 4% in the middle of next year, currently at 1.6% of the 10-year U.S. bond yield will double the growth, the market is about to experience a critical moment.
Roche explained that prices are rising for several reasons, the post-epidemic era will generate huge demand, and consumers will begin to spend their previously accumulated excess savings. He also pointed out that the big government (big government) will affect the efficiency of governance, inefficiency is represented by rising inflation.
Roche made the above remarks at the time, the market discussion of inflation continued, people generally worried about high prices will impact asset values and corporate profits, while limiting consumer purchasing power.
The Federal Reserve Board (Fed) previously tried to alleviate the market’s concerns about rising inflation, repeatedly reiterated that the current rise in inflation is only a temporary phenomenon.
Roche criticized the Fed’s response lags behind and underestimates the inflation problem, saying that it misleads the public with temporary inflation and tries to cover up the problem, fearing that long-term inflation will lay hidden dangers.
The latest data show that the U.S. Consumer Price Index (CPI) rose 0.6% in March, an annual increase of 2.6%, the monthly rate of increase wrote the largest increase since August 2012, reflecting that as the government actively promote vaccinations and large-scale stimulus measures, coupled with the gradual restart of economic activity, U.S. inflation is heating up.
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