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Maglan Capital President David Tawil on his outlook for inflation, oil and cryptocurrencies.
President Biden On Wednesday, he again played down concerns about the recent surge in inflation, saying the surge in consumer prices is temporary, even though he warned that restaurants and other businesses in the hotel industry could take longer to recover from the pandemic.
Although Biden acknowledged that there would be “short-term inflation” as the economy reopens after the coronavirus pandemic, he told a CNN town hall in Cincinnati that most economists think ” that it is very unlikely that long-term inflation will get out of hand. “
“The vast majority of experts, including Wall Street, suggest that it is highly unlikely that long-term inflation will get out of hand,” Biden said. “There will be inflation in the short term, as everything is now trying to pick up.”
REPUBLICS EXCORE DEMOCRATS ‘$ 3.5T EXPENDITURE PLAN AS “UNREGISTERED” IN A FRAMEWORK OF INCREASING INFLATION
Still, the president acknowledged that companies in the hospitality and tourism sector could be “at a stalemate for a while” amid a labor shortage that has seen workers acquire more. bargaining power for better wages and working conditions.
“It’s really a question of people now deciding that they have the option of doing other things,” he said. “People are looking to make more money and to negotiate.”
Higher-than-expected inflation has become a new policy liability for the Biden administration, with the government reporting last week that prices for goods and services in June rose the most in 13 years, fueling fears that a rapid rebound of the economy does lead to runaway growth.
The Labor Department said in its monthly report that consumer prices rose 0.9% from May and 5.4% over the past year. Excluding oil and gas price volatility, core inflation jumped 4.5% over the past year, the biggest increase since November 1991.
Republicans clung to inflation issues, blaming the $ 1.9 trillion stimulus bill Democrats passed without a GOP vote in March of soaring prices and attacking the party for moving ahead with 4 An additional trillion dollars in new spending.
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“This is a liberal wish list,” Senator Lindsey Graham, RS.C., said at a press conference Wednesday alongside five GOP senators. “And how does that add to inflation? Well, spending $ 3.5 trillion is not a good idea when you have an inflationary economy.”
Democrats have largely played down concerns about the rising cost of goods and services and are continuing their two-pronged economic plans: -funded safety net.
Biden claimed the government’s investments would reduce rising inflation – rather than igniting it.
“If we make prudent, multi-year investments in better roads, bridges, transit systems and high-speed internet, a modern and resilient electricity grid, this is what will happen: it will remove bottlenecks in our economy.” , he said on Monday. “These measures will improve our productivity, raise wages without raising prices. It will not increase inflation, it will take the pressure off inflation.”
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The recovery in consumer prices has coincided with the stronger-than-expected recovery of the economy from the pandemic as Americans, filled with stimulus cash, start spending eagerly again, splurging on everything from vacations to newcomers. clothes.
Federal Reserve Chairman Jerome Powell also said he expects inflation to drop, attributing the increase to supply shortages and a pent-up wave of demand among consumers as more more Americans are vaccinated and are embarking on their post-pandemic life. Although he said inflation could turn out to be “higher and more persistent than expected,” Powell maintained that it is likely transient.
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