The Fed’s obsession with its inflation targeting goals has led to the worst of all possible world: Namely, roaring financial asset inflation, which is profoundly inequitable and destructive of capitalist prosperity, followed by a renewed outburst of goods and services inflation, which has now come out of hiding from behind the China trade and the Wall Street sump pump of financial asset speculation.
With respect to the China trade, where the Donald’s anti-consumer tariffs remain in place and where Biden’s camarilla of recycled War Party advisors are spoiling for a fight with Beijing, the hand-writing is clearly on the Wall. During the long years of Fed wailing about lowflation after January 2012, a huge anchor to the windward came from persistently falling import prices, largely driven by China.