Headline inflation has reached 4.2 percent, the fastest level since 2008. According to Steve Hanke, a Johns Hopkins University professor of applied economics, this is a “harbinger” of yet more inflation.
According to Hanke, the higher-than-expected inflation runs counter to the Federal Reserve’s earlier-in-the-year comments.
“On February 23, Fed Chairman Jerome Powell said that we must unlearn what Milton Friedman taught us, that inflation is indeed a monetary phenomenon. This is fantastic. A central bank chairman saying we’ll have to unlearn monetarism and monetary theory? This is a truly extraordinary comment. It didn’t take too long at all. That was February 23, and “bang, we’re entering the inflation scenario tremendously, and that’s what everyone in the United States is concerned about,” he added.