'Shocking' inflation now double the Fed's target, is 'harbinger of things to come' - Steve Hanke
Headline inflation is now at 4.2%, the highest reading since 2008. Steve Hanke, professor of applied economics at Johns Hopkins University, said that this is a ‘harbinger’ of even more inflation.
Hanke told David Lin, anchor for Kitco News, that inflation could run as high as 5% by the end of next year.
The higher-than-expected inflation comes contrary to the Federal Reserve’s remarks, made earlier in the year, Hanke noted.
“February 23, Jerome Powell, Chairman of the Fed, said that we’re going to have to unlearn what Milton Friedman told us, that inflation is always a monetary phenomenon. This is an incredible. A Chairman of a central bank saying we’re going to have to unlearn monetarism and monetary theory? This is really quite a remarkable statement. Well, it didn’t take very long. That was February 23, and boom, we’re hitting the inflation picture big time, and that’s what everybody’s worried about in the United States,” he said.
For more information on how inflation will derail President Biden’s policies, watch the video above.