{"id":1532817,"date":"2022-06-29T16:50:50","date_gmt":"2022-06-29T20:50:50","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1532817"},"modified":"2022-06-29T16:51:11","modified_gmt":"2022-06-29T20:51:11","slug":"fed-chairman-we-now-understand-better-how-little-we-understand-about-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chairman-we-now-understand-better-how-little-we-understand-about-inflation\/","title":{"rendered":"Fed Chairman: \u2018We Now Understand Better How Little We Understand About Inflation\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/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%2Ffed-chairman-we-now-understand-better-how-little-we-understand-about-inflation%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=1532817&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>Federal Reserve Chairman Jerome Powell has reflected on why the economic experts failed to predict surging inflation, and his findings didn\u2019t exactly imbue much confidence in those who heard them.<\/p>\n<p>During the European Central Bank forum, host Francine Laqua asked panelists, \u201cHindsight is a beautiful thing, I know\u2026but going forward\u2026how do we need to look at inflation differently? So, for example, in the U.S. \u2014 the stimulus. Did we circulate the impact this would have on inflation?\u201d<\/p>\n<p>\u201cI think we now understand better how little we understand about inflation,\u201d Powel responded.<\/p>\n<p>The Bloomberg TV anchor responded with a chuckle, \u201cThat\u2019s not very reassuring.\u201d<\/p>\n<p>\u201cNo, honestly, this was unpredicted. I was looking at the time of our June meeting one year ago, of the 35 people who filed with a survey of professional forecasters, 34 of them had inflation below four percent for the last year. And of course, it was way above four percent.\u201d<\/p>\n<p>The exchange can be seen here:<\/p>\n<p lang=\"en\" dir=\"ltr\">Jerome Powell: &#8220;I think we now understand better how little we understand about inflation.&#8221;<\/p>\n<p>Host: &#8220;That&#8217;s not very reassuring&#8221;<\/p>\n<p>Jerome : &#8220;This was unpredicted&#8221;<\/p>\n<p>Only the &#8220;experts&#8221; and the media didn&#8217;t see this coming. <br \/>Just about everyone else did.<\/p>\n<p>Sound ON <a href=\"https:\/\/t.co\/6Gv35rXPrW\">pic.twitter.com\/6Gv35rXPrW<\/a><\/p>\n<p>\u2014 Wall Street Silver (@WallStreetSilv) <a href=\"https:\/\/twitter.com\/WallStreetSilv\/status\/1542214066218774528?ref_src=twsrc%5Etfw\">June 29, 2022<\/a><\/p>\n<p>Powell also clarified that experts were using an outdated model to predict inflation.<\/p>\n<p>\u201cSo really, everyone had the same model \u2014 which was the <a href=\"https:\/\/www.investopedia.com\/terms\/p\/phillipscurve.asp\">Phillips curve<\/a> model \u2014 and it just was not capable of producing high inflation. But what it was missing was something that\u2019s been completely missing in the data for 40 years, which is basically the collapse of the supply-side.\u201d<\/p>\n<p>\u201cYou know the U.S. economy is famously adaptable\u2026 and yet here they are,\u201d he continued. \u201cSo, what you had was very strong demand, but hitting effectively a vertical supply curve. So ordinarily when people want to buy cars \u2014 which they really did, because they didn\u2019t want to ride on public transportation, rates were low, they had all these savings \u2014 the car companies would make more cars and they might raise prices, too. In this case, they couldn\u2019t make as many cars so what you got was, straight up the vertical supply curve, a big price increase.\u201d<\/p>\n<p>Powell theorized that the process could happen in reverse and help lower inflation.<\/p>\n<p>The Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that <a href=\"https:\/\/www.dailywire.com\/topic\/inflation\">inflation<\/a>\u00a0surpassed\u00a0<a href=\"https:\/\/www.dailywire.com\/topic\/economy\">record highs<\/a>, according to the <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">U.S. Bureau of Labor Statistics<\/a>. President Joe Biden has blamed COVID-19, Russian President Vladimir Putin\u2019s invasion of Ukraine, MAGA-Republicans in Congress, and energy companies for soaring costs of goods.<\/p>\n<p>While inflation is a global problem, <a href=\"https:\/\/www.oecd.org\/sdd\/prices-ppp\/consumer-prices-oecd-06-2022.pdf\">data<\/a>\u00a0from the Organization for Economic Cooperation and Development (OECD) shows that the United States\u00a0<a href=\"https:\/\/www.dailywire.com\/news\/pretty-bleak-international-economic-organization-issues-new-warning-about-soaring-inflation-famine\">boasts higher inflation rates<\/a>\u00a0than many other developed countries. The 8.3% inflation rate seen in the United States as of April was higher than the 7.8% rate in the United Kingdom, the 7.4% rate in Germany, the 6.8% rate in Canada, the 6% rate in Italy, the 4.8% rate in South Korea, and the 2.5% rate in Japan.<\/p>\n<p>Powell\u2019s comments in full can be seen here:<\/p>\n[embedded content]\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Chairman Jerome Powell has reflected on why the economic experts failed to predict surging inflation, and his findings didn\u2019t exactly imbue much confidence in those who heard them. During the European Central Bank forum, host Francine Laqua asked panelists, \u201cHindsight is a beautiful thing, I know\u2026but going forward\u2026how do we need to look &#8230;<\/p>\n","protected":false},"author":326,"featured_media":1532957,"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-1532817","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\/1532817","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\/326"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1532817"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1532817\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1532957"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1532817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1532817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1532817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}