Pricing pressures, stemming partly from COVID-induced supply-chain disruptions, are rippling around the world and forcing central banks to adopt a more belligerent monetary-policy stance, and the recent surge in prices is on those corners. is not lost. Markets that would normally ignore macroeconomic trends.
On Wednesday, technology publisher and bitcoin evangelist Jack Dorsey quipped that US inflation seemed far from temporary in a recent report released by the government.
Reference: Consumer prices rose 0.5% in December and US inflation hit a nearly 40-year high of 7%
Dorsey’s tweet, in response to another from macroeconomic expert and cryptocurrency enthusiast Lynn Alden, featuring a chart of rising consumer prices, comes after the annual reading of consumer inflation hit 7%.
The Labor Department said the consumer-price index – which measures what consumers pay for goods and services – rose 7% in December from the same month a year ago, up from 6.8% in November. above the figure. Fastest pace since 1982 and the third straight month in which annual inflation exceeded 6%.
Dorsey’s comments can be read as a non-veiled reference to Federal Reserve Chairman Jerome Powell and other policymakers and economists, who referred to this current bout of persistent inflation as a pandemic-led event. What was going to be “transient”. “Or short-term.
In testimony before the Senate Banking Committee in November, however, Powell announced it was high time to retire the word “transient”, which had become a nuisance for the US central banker because its meaning was not clearly defined. How the Fed sees the transitory nature of price increases.
Rex Nutting: Here’s Where Inflation Came From in 2021
“we use [the word transitory] That means it won’t leave a lasting mark in the form of higher inflation,” Powell told Senate lawmakers in November. “I think it’s probably a good time to retire that word and do more of what we want to say.” Try to explain clearly.”
The average American, however, is increasingly dwelling on the term and trying to understand its implications.
On Tuesday, the term inflation was one of the top trends on Twitter, ranking in the top 2 in the last check:
And it was also the top-three trending search term on Google in the last 24 hours.
Dorsey, Joe Block Inc. run sq,
(né Square Inc.) and Twitter are co-founders of TWTR,
Bitcoin and Ether is a booster of digital currencies like ETHUSD,
Many believe that adopting those virtual assets can help mitigate the effects of inflation.
Meanwhile, the market struggled to find its footing, with many investors betting that the Fed would raise interest rates at least four times in 2022 as it battles inflation. Dow Jones Industrial Average DJIA,
s&p 500 index spx,
and Nasdaq Composite Index Comp,
Wednesday is flipping between gains and losses, while Dorsey’s company Block Inc. has also seen bearish trading in the session.
Bitcoin was changing hands at around $43,600, up about 2%, while Ether on the Ethereum network was enjoying an increase of about 4%, to around $3,370.
Dorsey in October Tweeted that “hyperinflation” – defined as rapid and unrestrained price increases that run at 50% per month or more – “will change everything.” Those comments drew flak from economists and others, including a detailed rebuttal from Arch Invest founder Cathy Wood.
See: Kathy Wood says Jack Dorsey’s ‘hyperinflation’ call is not true