Make Kitco Your Homepage

'Shocking' inflation now double the Fed's target, is 'harbinger of things to come' - Steve Hanke

Kitco News

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.