The forecasts are hilarious. Those are not forecasts, those is what the forecaster wants. It is an order for the future not a prediction. Until unemployment hist about 4.5% and the knuckleheads in Washington D.C. stop spending - we could very well repeat 1970s style inflation.
I forgot to note that Volker had to deal with inflation from skyrocketing oil prices. In theory with oil down, a lot of inflation evaporates. And the supply chain hangover from Covid should collapse inflation.....In theory is the operative word here.
Deficits rose through the early '70s to levels previously unheard-of except during World War II. In 1973, the budget deficit was $14.3 billion. Then, with the sharp rise in the price of petroleum products due to the OPEC-engineered shortage of 1973, inflation increased dramatically.
The forecasts are hilarious. Those are not forecasts, those is what the forecaster wants. It is an order for the future not a prediction. Until unemployment hist about 4.5% and the knuckleheads in Washington D.C. stop spending - we could very well repeat 1970s style inflation.
I forgot to note that Volker had to deal with inflation from skyrocketing oil prices. In theory with oil down, a lot of inflation evaporates. And the supply chain hangover from Covid should collapse inflation.....In theory is the operative word here.
Last comment, you guys nailed the inflation predictions.
Deficits rose through the early '70s to levels previously unheard-of except during World War II. In 1973, the budget deficit was $14.3 billion. Then, with the sharp rise in the price of petroleum products due to the OPEC-engineered shortage of 1973, inflation increased dramatically.