Despite the Fed’s and particular economists’ “everything is fine, don’t worry” attitude, Americans are doing the exact opposite when it comes to inflation numbers.
In fact, a recent survey displays American’s fear of rising inflation numbers.
The Federal Reserve Bank of New York’s Survey of Consumer Expectations for April reports that American’s believe inflation rates will increase to as much as 3.4% a year from now– the highest it’s been since September 2013.
Unfortunately, these numbers are feared only to slightly decrease to 3.1% three years from now.
Of course, U.S. Treasury Secretary Janet Yellen’s recent attempt to fool American citizens had nearly everyone scratching their heads.
Early last week, Yellen made two contradicting statements regarding inflation. Starting the day with, “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy.”
Then later the same day, she stated that she “does not anticipate that inflation would be a problem for the U.S.,” followed by, “I don’t think there’s going to be an inflationary problem. But if there is, the Fed will be counted on to address them.”
And lastly that she was, “neither predicting nor recommending a rate rise.”
The Fed is saying that there will not be an inflation problem, but yet the economy is reacting to all the symptoms of exactly that.
Consider this– the sharp increase in home prices, material prices are increasing, and some of the largest companies in the world are increasing their product pricing.
Home prices surged 12% in February, the biggest jump since 2006.
Those numbers may have to do with the skyrocketing prices of lumber. Prices have jumped by 340% compared to last year.
Consumer companies are hiking their prices as well.
Procter & Gamble and Coca-Cola announced they are going to begin raising prices on their goods in order to offset rising commodity costs
Brands like, PepsiCo, Kimberly-Clark, General Mills, and J.M. Smucker have also followed suit.
Those who believe that the endless money printing activities have no effect on the value of the dollar… Sure, everyone’s entitled to their own opinion, flawed or not.
However, how would one explain the inflationary rise of goods and products across the board?
The Fed is doing nothing to protect us from inflation except for telling us there will be no inflation…
It’s time to have a plan of your own.