{"id":37702,"date":"2022-03-16T14:50:49","date_gmt":"2022-03-16T14:50:49","guid":{"rendered":"http:\/\/decisioneconomicsinc.com\/?p=37702"},"modified":"2022-03-21T19:16:33","modified_gmt":"2022-03-21T19:16:33","slug":"de-u-s-and-global-economiesand-markets-here-and-now-superstrong-economy-and-red-hot-inflation-3-16-22","status":"publish","type":"post","link":"https:\/\/decisioneconomicsinc.com\/de-u-s-and-global-economiesand-markets-here-and-now-superstrong-economy-and-red-hot-inflation-3-16-22","title":{"rendered":"DE | U.S. and Global Economiesand Markets | Here-and-Now\u2014Superstrong Economy and Red Hot Inflation – 3\/16\/22"},"content":{"rendered":"\n<p>[private]<\/p>\n\n\n\n<div class=\"wp-block-file\"><a href=\"https:\/\/decisioneconomicsinc.com\/wp-content\/uploads\/2022\/03\/GMW_2022-03-16-v2.pdf\">GMW_2022-03-16-v2<\/a><a href=\"https:\/\/decisioneconomicsinc.com\/wp-content\/uploads\/2022\/03\/GMW_2022-03-16-v2.pdf\" class=\"wp-block-file__button\" download>Download<\/a><\/div>\n\n\n\n<p>[\/private]<\/p>\n\n\n\n<p style=\"text-align:center\"><strong>Here-and-Now\u2014Superstrong Economy and Red Hot Inflation<br> But Ahead? Russia\/Ukraine-War Shock<br> \u201cStagflation\u201d Risk and the Fed<\/strong><\/p>\n\n\n\n<p>[\/private]<\/p>\n\n\n\n<p>A superstrong labor market (Feb.; release, Mar. 4) and accelerating CPI inflation (Feb.; release Mar. 10) underscored a \u201cHot\u201d U.S. Economy, \u201cRed Hot\u201d Inflation and \u201cHot\u201d Labor Market\u2014a \u201cBoomy Expansion,\u201d if not a Boom, that has emerged.<\/p>\n\n\n\n<p><br><strong> Why the \u201cHeat\u201d in the Here-and-Now?<br><\/strong> 1) The fading of COVID-19; 2) Pentup Demands of consumers; 3) strong financial positions for Households and Nonfinancial Corporations; 4) a solid and resilient financial system, especially Banks; 5) lagged effects from a long period of Ultra-Easy Monetary Policy and unprecedented massive Fiscal Stimulus; and 6) the internal dynamics of a strong business cycle upswing.<\/p>\n\n\n\n<p><br> At a 3.8% Unemployment Rate and CPI inflation over the past year having accelerated from 2.7% YoY to 7.9%, the Federal Reserve\u2019s Dual Objective\u2014Price Stability and Full Employment\u2014appears not only to have been reached, but surpassed.<\/p>\n\n\n\n<p><br> This is \u201cGood News\u201d for the United States and for \u201cMain Street.\u201d<br> The economy is strong, the unemployment rate low, there are many more Jobs Openings (11.3 million, JOLTS Survey, Mar. 9) than available labor, nominal disposable income and wages are rising, consumers have considerable savings, businesses\u2019 cash flow far exceeds outlays with lots of room for increased spending, and states and localities tax revenues are surprisingly strong because of double-digit growth in Nominal GDP.<\/p>\n\n\n\n<p><br><strong> But What About Ahead?<br><\/strong> For \u201cWall St.\u201d the \u201cGood News\u201d for Main Street sows some seeds of \u201cBad News,\u201d particularly the sharp acceleration of price inflation and essentially full employment unemployment rate at 3.8%, with inflation far above the average 2% price inflation target of the Federal Reserve now a big problem for the central bank. This all spells rising interest rates for a long time, a \u201cWall St.\u201d game-changer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[private] [\/private] Here-and-Now\u2014Superstrong Economy and Red Hot Inflation But Ahead? Russia\/Ukraine-War Shock \u201cStagflation\u201d Risk and the Fed [\/private] A superstrong labor market (Feb.; release, Mar. 4) and accelerating CPI inflation (Feb.; release Mar. 10) underscored<a href=\"https:\/\/decisioneconomicsinc.com\/de-u-s-and-global-economiesand-markets-here-and-now-superstrong-economy-and-red-hot-inflation-3-16-22\"> read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[44,10,43,5,1,42,41],"tags":[],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/posts\/37702"}],"collection":[{"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/comments?post=37702"}],"version-history":[{"count":1,"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/posts\/37702\/revisions"}],"predecessor-version":[{"id":37713,"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/posts\/37702\/revisions\/37713"}],"wp:attachment":[{"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/media?parent=37702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/categories?post=37702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/decisioneconomicsinc.com\/wp-json\/wp\/v2\/tags?post=37702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}