At Fortune finance professor Murray Sabrin predicts inflation in the coming year:
My fearless forecast, therefore, is: Inflation accelerates in 2022. Then, the public outcry over skyrocketing prices and the media reports highlighting how prices are decimating the average family’s purchasing power may cause the Biden administration to impose wage-price controls as President Nixon did in 1971 to take the sting out of inflation before his 1972 reelection campaign. Biden could use an executive order if Congress doesn’t give him statutory authority to impose price controls.
Without price controls, I expect the Fed to raise the Fed Funds Rate, sometime in 2022 and to continue tightening in 2023. Thus, the next recession could begin in the fall of 2023, but no later than a year later. If the recession does not begin on schedule, it only means it has been postponed, not eliminated.
Inflation and recession. Things to look forward to in the new year.
Under the current Biden Administration there will be no fiscal rescue plan at the “end of the tunnel.†His domestic policies do not grow the economy. They strangle it. His never-ending stimulus legislation only delays inevitable bills that have to paid by someone else. Except for the inauthentic stock market, there is more a sense of hopelessness and helplessness than there is of hope and self-empowerment.
Biden is one of the most destructive president ever…..!
It would be something to see inflation accelerate in 2022. That would open the door to a crisis of confidence in the dollar and all that entails.
Administrative fiat is already contemplated; i.e. the mooted oil export ban. Rent control / rent eviction bans at various localities. Ones related to food will come if fertilizer prices don’t come under control.
I am skeptical the Fed has the will to raise rates enough to engineer a recession. These days; foreign central banks are not increasing their reserves of US dollars. All that new debt in the past couple of years were either printed or financed domestically. Raising rates would impair the federal governments ability to borrow or seriously damage the domestic holders of government debt. Unless inflation is worse then the mother of all government belt tightenings and a financial crisis; the Fed will be constrained in raising rates.