from Sputnik News:
Twitter co-founder Jack Dorsey weighed in on “hyperinflation” in the US, issuing a cryptic warning that things are going to become considerably worse.
In typical Dorsey style, the cryptocurrency advocate tweeted that “it will happen in the US soon, and so the world.”
“Hyperinflation is going to change everything,” Dorsey tweeted Friday night. “It’s happening.”
His tweet comes after the Personal Consumption Expenditures Price Index (PCE), from the US Bureau of Economic Analysis, rose again in July and drove the increase over the past year to a 30-year high, putting major strain on business and consumers in response to the economic impact of the COVID-19 pandemic.
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“Inflation could prove to be more stubborn than many have been anticipating,” chief economist Richard Moody of Regions Financial told Market Watch in August.
On Sept 22, the US Federal Reserve System (FRS) projected that the annual inflation rate would stay slightly above 2 percent for four consecutive years.
“That is my worry,” Moody added. “Inflation will be above the Fed’s (2 percent) target through all of next year.”
Elevated inflation has invigorated central bank critics, who began talking about slowing — or tapering — the pace of its Treasury purchases.
Since the pandemic, the Federal Reserve has suppressed interest rates to near-zero levels and resumed large-scale asset purchases.
The Federal Reserve said in a press release in September that it would continue to increase its holdings of Treasury securities by at least $80 billion alongside an additional $40 billion of agency mortgage-backed securities (MBS).
Hyperinflation is described as accelerating and out-of-control price increases caused by an increase in money supply not supported by economic growth, and demand-pull inflation in which demand exceeds supply.
On Friday, Federal Reserve Chairman Jerome Powell reportedly acknowledged that inflation pressures “are likely to last longer than previously expected,” and could run “well into next year.”
US Representative Jim Edward Banks (R-IN), reportedly said that his constituents have “seen the higher prices on gas in particular, but also groceries”. Gas prices in many states have skyrocketed past $4.00 a gallon.
The Federal Reserve said the path of the economy continues to depend on the course of the virus, but added that they are prepared to ease the backlog, taking into account the emerging risk of inflation.
The results, however, may not be apparent for some time, according to the reports.