White House Defends Trillion-Dollar Stimulus While Jamie Dimon and Larry Summers Warn of Runaway Inflation – Economics Bitcoin News

On Wednesday the White House defended President Joe Biden’s trillion-dollar spending proposals despite the criticism concerning rising inflation and low-interest rates. Inflation has risen at unprecedented levels in the U.S. and the average American’s purchasing power is growing less powerful. Now critics like JPMorgan Chase CEO Jamie Dimon and American economist Larry Summers have blasted the Biden administration because they expect inflation to grow “considerably higher.”

Americans Watch Purchasing Power Sink While Analysts Suspect Even More Inflation on the Horizon

Inflation has been a worry for American citizens ever since the U.S. government and Federal Reserve decided to increase the M1 monetary supply like never before in history. Essentially, inflation is the rise in price for goods and services, and the nation’s currency ends up buying fewer goods and services.

Reports show that nearly everything is rising in value, and the U.S. dollar can purchase far less than it could before. Car prices are expected to go through the roof this year, food prices have grown astronomical and pork prices touched a seven-year high. The USDA expects the price of food to rise from 2.5% to 3.5% for the year. It’s quite blatant that the central bank and politician’s often quoted “2% inflation rate” is a myth, as 2021 statistics show prices of goods and services in the U.S. have surged.

Despite some disapproval and inflation concerns, the Biden administration has been defending its proposed $2.3 trillion American Jobs Plan and the $1.8 trillion American Families Plan.

Morningstar.com increased its 2021 inflation forecast for the Personal Consumption Expenditures Price Index on Wednesday. “We expect 2021 core inflation of 2.5%,” the prediction notes.

“For 2022-25, our forecast is essentially unchanged; we expect moderate core inflation averaging 2.3%, just above the Federal Reserve’s 2% long-run target,” the…

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