Perspectives: Concerns About Consumer Inflation
Summary from the AllSides News Team
Featured Coverage of this Story
From the Center
‘Good’ inflation or ‘bad’? Investors are scared because they can’t tell difference just yetThe stock market is generally expected to benefit from inflation, but a long-predicted surge in U.S. prices rattled investors in the past week. A closer look at the historical record might indicate the source of concern, according to one Wall Street analyst.
For equities, there is “good” inflation and “bad” inflation, said Nicholas Colas, co-founder of DataTrek Research, in a Thursday note. Good inflation lifts corporate earnings as long as employment remains high; bad inflation causes recessions, undercutting corporate earnings.
“Markets are volatile because they’re not sure which sort of...
From the Left
Inflation is up. The stock market is down. Here’s why you shouldn’t panic.This was the week of consumer angst. Inflation is pushing prices up, while the stock market started the week trending down.
“The economy is going through some dramatic adjustments as it opens up following the unprecedented circumstances associated with the pandemic last year,” said Mark Hamrick, senior economic analyst for Bankrate.
Then there’s the panic over gas.
“Top off your cars,” a friend texted this week. “Costco and BJ lines are extremely long this morning and smaller stations are running out of gas.”
It’s the toilet paper sellout all over...
From the Right
As Prices Rise, Fed Dismisses Inflation WorriesAlthough inflationary pressures keep building in the U.S. economy, economists believe the Federal Reserve officials are unlikely to tighten monetary policy before seeing significant improvement in labor market recovery.
From gas to groceries, Americans have started to see price increases in recent weeks as the economy reopens. Used car and truck prices, for example, surged 21 percent year-over-year, including a 10 percent increase in April alone.
Surveys also show that U.S. businesses are raising prices for their goods and services at a rate not seen since the late 1970s and...
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