The country’s economic recovery continued to face new obstacles this week as data from the federal government shows the nation’s inflation rate approaching a 40-year-high.
“Already-hot inflation is forecast to climb even further when November data comes out on Friday, to 6.8%. That would be the highest rate since Ronald Reagan was president in the early 1980s — and in the lifetimes of most Americans,” reports Bloomberg.
“Higher prices helped deliver a banner year for U.S. business, which is posting its fattest profit margins since the 1950s. But for Joe Biden’s administration and the Federal Reserve -– who didn’t see it coming — the sudden return of inflation, largely dormant for decades before 2021, is looking increasingly traumatic,” adds the financial news outlet.
“The question for me isn’t whether inflation will slow,” said Markowska at Jefferies. “The question is, are we going back to 2? Are we going back to 3? What’s the medium-term destination? And that’s, I think, going to be determined by the labor market.”
Read the full report here.