By Greg C. Truax
Inflation warning signs are flashing.
One prominent economist, Larry Summers, a Democrat, recently Tweeted that “until the fed and treasury fully recognize the inflation reality, they are unlikely to deal with it successfully.”
Economist Summers, a former Secretary of Treasury, notes that when the Biden Administration formulated its budget in February, it expected two percent inflation in 2021.
But today inflation is running at a 13-year high of 5.4 percent. Go to the grocery store or gas station: Food, energy, as well as shelter costs are rising rapidly.
Polls show that Inflation has become a top concern for many Americans, and some expect inflation will stay high.
Question: Are worrisome wage-price spirals building in the economy?