{"id":1226208,"date":"2022-01-19T22:24:05","date_gmt":"2022-01-20T03:24:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1226208"},"modified":"2022-01-19T22:24:12","modified_gmt":"2022-01-20T03:24:12","slug":"inflation-in-2022-may-be-above-what-it-was-last-year-warns-leading-economist","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-in-2022-may-be-above-what-it-was-last-year-warns-leading-economist\/","title":{"rendered":"Inflation In 2022 May Be \u2018Above\u2019 What It Was Last Year, Warns Leading Economist"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-in-2022-may-be-above-what-it-was-last-year-warns-leading-economist%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1226208&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Larry Lindsey \u2014 the director of the National Economic Council under President George W. Bush \u2014 is warning that inflation could be \u201cabove\u201d 2021 levels in 2022.<\/p>\n<p>In the month of December, consumer prices <a href=\"https:\/\/www.dailywire.com\/news\/breaking-inflation-rises-7-in-december-over-previous-year-fastest-rise-in-almost-40-years\">rose<\/a> by 7% over the previous year \u2014 the highest rate in roughly four decades. Though nominal wages have been rising, \u201creal average hourly earnings\u201d \u2014 which consider the effect of inflation \u2014 <a href=\"https:\/\/www.dailywire.com\/news\/in-2021-inflation-gave-the-typical-american-a-2-4-pay-cut\">decreased<\/a> by 2.4% from December 2020 to December 2021, starkly cutting the purchasing power of American households.<\/p>\n<p>During an interview with <a href=\"https:\/\/www.foxbusiness.com\/economy\/inflation-2022-national-economic-council-director\">Fox Business<\/a> anchor Maria Bartiromo, Lindsey \u2014 who also served as a member of the Federal Reserve Board of Governors through the 1990s \u2014 said that inflation is now \u201cembedded into the labor market.\u201d<\/p>\n<p>\u201cThere is never an example of getting inflation to this level, embedded in the labor market and it ending without recession\u2026 I don\u2019t think we\u2019re going to have a recession this year,\u201d he said. \u201cSlower growth, maybe. So I don\u2019t think there\u2019s any chance at all decelerating inflation.\u201d<\/p>\n<p>\u201cSo until you get the overnight interest rate up somewhere close to at least the prevailing inflation rate, you\u2019re really not going to make a dent in inflation,\u201d he continued, referring to the Federal Reserve\u2019s upcoming interest rate hikes, which place downward pressure in prices. \u201cWe\u2019re going to continue to have inflation this year, probably at or maybe even a little above what last year\u2019s pace was.\u201d<\/p>\n<p>Lindsey\u2019s remarks were similar to those <a href=\"https:\/\/www.dailywire.com\/news\/well-still-have-inflation-for-the-next-two-years-harvard-economist-warns\">made<\/a> by Harvard University economist Kenneth Rogoff, who said that \u201cit\u2019s not so easy to raise interest rates to fight inflation when public and private data is high, when the stock market is high, when housing prices are high, when the economy is still weak.\u201d Central bankers willing to do so would have \u201ca lot of stomach.\u201d<\/p>\n<p>Highlighting the impact of inflation on American consumers and small businesses, Sen. Rand Paul (R-KY) released a report earlier this week called <a href=\"https:\/\/www.dailywire.com\/news\/its-only-going-to-get-worse-rand-paul-releases-concerning-new-report-on-soaring-inflation\">The Hidden Tax<\/a>:<\/p>\n<p>71 percent of households making under $40,000 annually have indicated economic hardships from rising prices, as opposed to just 29 percent of households making $100,000 or more.<\/p>\n<p>Low and middle-income families spend a larger portion of their income on high-inflation items, such as gasoline, used cars, and food. Families in the lowest income quartile spend nearly 40 percent of their annual income on these three categories. As a means of comparison, families in the top quartile spend only 10 percent of their annual income on these categories.<\/p>\n<p>\u201c$4.9 trillion in COVID-19 stimulus spending has led to one of the highest and most sustained levels of inflation in U.S. history,\u201d Paul commented. \u201cWhile government stimulus spending was intended as a form of relief, and low and middle-income families as well as small business owners were promised that their taxes would not increase, Americans everywhere are now paying a hidden tax called inflation.\u201d<\/p>\n<p>\u201cIn recent months, prices on nearly everything from gas, food, and clothes to electricity, car prices, and rent, have all increased, and unfortunately it\u2019s only going to get worse,\u201d he continued. \u201cCongress needs to realize that further spending at this time of rapidly rising prices is only going to continue the trend of rising prices on this nation\u2019s already vulnerable businesses and families.\u201d<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Larry Lindsey \u2014 the director of the National Economic Council under President George W. Bush \u2014 is warning that inflation could be \u201cabove\u201d 2021 levels in 2022. In the month of December, consumer prices rose by 7% over the previous year \u2014 the highest rate in roughly four decades. Though nominal wages have been rising, &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1226208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1226208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1226208"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1226208\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1226208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1226208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1226208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}