Wednesday, September 29

Inflation debate

Economy, Fed, Federal Reserve, inflation, Inflation debate, Inflation Expectations, inflation fears, inflation gauge, inflation outlook, inflation risk, Jerome Powell, Markets, MI Exclusive, Mohamed El-Erian, New cars, semiconductor chips, semiconductor shortage, Used cars

There is a fundamental misunderstanding of inflation and its spread throughout sectors of the economy proves it is not isolated or transitory, Mohamed El-Erian says

Mohamed El-Erian. Rob Kim/Getty Images Mohamed El-Erian said there is a fundamental misunderstanding of inflation because few people have lived through it. "I always laugh when people say, oh, it's isolated, it's transitory," El-Erian told CNBC on Monday. He also disagreed with the Federal Reserve's view that inflation is transitory. Sign up here for our daily newsletter, 10 Things Before the Opening Bell Economist Mohamed El-Erian in an interview Monday took aim at assessments of inflation that describe rising prices as "transitory," stating that there is a fundamental misunderstanding of what inflation is and how it is already spreading throughout the economy. "I always laugh when people say, oh, it's isolated, it's transitory," Allianz's chief economic adviser told CNBC. "I th...
Andrew Bailey, Bank of England, Commodities, Economy, inflation, Inflation debate, Lumber, Lumber futures, lumber prices, Markets, MI Exclusive

Tumbling lumber prices are a sign that strong inflation will be temporary, Bank of England boss says

Lumber prices plummeted in June. Carolyn Cole/Getty Images The plunge in lumber prices is a sign strong inflation should fade, the Bank of England's governor said. Andrew Bailey is among the central bankers to argue that inflationary pressures should be temporary. Lumber prices soared but then tumbled 45% in June as sawmills upped production and demand slipped. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The dramatic fall in lumber prices in the last month is a sign that strong inflation will be temporary, the governor of the Bank of England said on Thursday.Lumber futures soared in the first few months of the year before dropping more than 40% in June. Prices peaked at more than $1,670 per thousand board feet of lumber in early May, but have since p...