Tuesday, September 13, 2022

Understand how the U.S. manage the 2022 Inflation/Carlos Pueblo

 Understand how the U.S. manage the 2022 Inflation/Carlos Pueblo

The 2022 Inflation is real and we need to understand how the U.S. manage it and help us to go through it, in the other word a soft landing. The popular thinking of the inflation is that our currency is diminished in a result of printing too much money, i.e. the Covid extra help and the PPP to stimulate the loom of the recession. Of course, there is another major reason that the overall U.S. economic growth has been continually since 1980's. It is the time to reach to the top and the plateau. The money circulation is not tight as a matter of the fact. 

The Federal Reserve raises the key interest rate which means it is more concerned to the inflation than the downturn of the economic into the recession. The White House is in agree to the Fed. Both Commerce and Treasury Secretaries both agree that the U.S. Economic is looking well and the national unemployment rate is very low to a full national employment. 

During the last two threat of recession, 1987 & 2008, the Fed has lowered the interest rate continuously till this year to the reverse. It helps the economic to expand with a soft landing in mind. I boldly guess that the U.S. both the Fed and White House included have the conclusion that the 2022 inflation is a pure inflation such as the diminished US dollars. As a matter of the fact, after the inflation and the rising U.S. interest rate, The U.S. currency become the most strong currency in the world. Of course, I don't see anything to do with me.

The stock market has been reversed of it downturn with a recovery, yet today there is a crashed on the market. The recession is back into the investors' mind. Perhaps, we need to go back to the definition of the inflation to look at the plateau and the slide curve to the valley.

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