Larry Summers predicted inflation surge. Hear what he thinks comes next (CNN)

[ItsjustMe]

Economist Larry Summers predicted the latest rise in inflation, going against many in his own party. Summers tells CNN's Chris Cuomo what he believes caused the inflation surge and how to stop it.

[Tomconroy]

1. I think the 1980s taught us that only the Fed can cure inflation.

And the cure gets pretty ugly. Not sure what Joe Biden is expected to do.

[Beachnutt]

3. trump appointee jerome powell needs to go

[Rebl2]

10. Agreed

[WHITT]

2. Except

That's NOT what causes inflation.

[pansypoo53219]

4. get the national guard into semis. ports.

[dem4decades]

5. I hate to say it but Americans judge the economy and The President's success, on the price of gas.

I don't know what Biden can do but if the Democrats want to keep the 3 branches, he has to do something.

The price of gas will be used as a hammer to smash them whether it's fair or not.

[Wuddles440]

13. Tap the Petroleum Reserve.

[doc03]

6. I hope he is wrong but i think Janet Yellen is sugar coating it. I saw a headline

from one of the news sites this morning "Stagflation", haven't seen that since the 80s.
That is gloom and doom bullshit, yes there is inflation but the economy otherwise is doing
great. it is nothing like the late 70s and early 80s.

[lonely bird]

7. Sigh

Inflation is a psychological response by humans. It can be in response to many things. Shrinking margins is an example. Increased demand results in a greed response.

There has been shortage which creates a greed/fear response. Shortages in various petrochemical feedstocks has caused problems. Those shortages were created by the storm in TX which shutdown the grid and the petrochemical plants. Equipment was damaged which meant repairs were needed including replacement. Imo, the manufacturers deliberately kept in place 3Q and 4Q maintenance plans to replace and repair equipment. This meant not running at full production. Major suppliers of isocyanates and polygons have been on force majeur meaning their customers have been on allocation far below their normal supply. This is just one example.

[Tomconroy]

8. I think the rise in wages is being caused by a genuine

Labor shortage, which is way different from the 1970s.

[Walleye]

9. Everything still cost about 10 times what it cost when I was in school

Inflation has been a way of life in America

[Rebl2]

11. I feel

like prices started going up last year while the tfg was still in office

[Walleye]

12. That's true the only thing that slowed it down was the pandemic

[Fiendish Thingy]

14. Nobody should listen to Summers, ever.

He’s a dyed-in-the-wool neoliberal (drink! Even though it’s absolutely 100% true!) who preaches austerity instead of socially responsible remedies.

I’d trust a falling down drunk Krugman before I’d trust a stone cold sober Summers.

[Quixote1818]

15. Most agencies predict it to drop next year

https://knoema.com/kyaewad/us-inflation-forecast-2021-2022-and-long-term-to-2030-data-and-charts