The evidence of hyperinflationary price spirals is now forcing members of the financial establishment to face reality. Raphael Bostic, chairman of the Federal Reserve of Atlanta, said yesterday that we should stop talking about inflation being transitory. “Up to now, indicators do not suggest that long-run inflation expectations are dangerously untethered,” he said during a virtual event organized by the Peterson Institute for International Economics. “But the episodic pressures could grind on long enough to un-anchor expectations.”
Translated from bank jargon, this means that inflation is out of control. Accordingly, Bostic called for a monetary squeeze, or tapering. “I believe the conditions I’ve described argue for a removal of the Committee’s emergency monetary policy stance, starting with the reduction of monthly asset purchases, as we discussed in last month’s meeting,” he said, as reported by Reuters.
