On Thursday’s broadcast of the Fox Business Network’s “Kudlow,” Breitbart Economics Editor John Carney reacted to the September CPI report and stated that the inflation progress over the summer appears to be an outlier and “when the Fed actually gets around to seeing what’s happening in inflation next year, they’re going to have to raise again, and that’s going to shock markets.”
Carney stated, “Absolutely, inflation hasn’t left us. I’ve been saying for some time, if you look at the measures of underlying inflation, it shows that inflation isn’t going down at all. It’s actually remaining very steady. You did have a lot of people out on Twitter today, liberals, saying, if you take away this or that, that there’s no inflation. They’re proving the point that if you take away anything that goes up in price, then there’s no inflation at all. … When Arthur Burns tried to do that back in the 1970s, he kept saying, well, we can exclude this, we can exclude that, and if you do that, then there’s not a real inflation problem. The problem is, you ignore the actual inflation that’s happening and it gets out of control.”
He added, “It looks like the low inflation we got in the beginning of the summer was an outlier, that inflation is starting to go back up. When you look at things like the median inflation that the Cleveland Fed puts out, it showed that, basically, inflation wasn’t going down at all. It ticked down for one month, it was relatively flat, and now it’s climbing back up. I think this is troubling. I think when the Fed actually gets around to seeing what’s happening in inflation next year, they’re going to have to raise again, and that’s going to shock markets.”
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