No return to low-inflation state of COVID, expert says
According to expert Jim Bianco, the U.S. economy cannot return to prior inflation levels following the COVID-19 pandemic. In an interview with Real Vision's Andreas Steno Larsen on July 29, Bianco Research's founder made these comments.
“We’ve entered a new economy, we’ve entered a post-COVID economy, it is not like the pre-COVID economy,” Bianco said, adding that more people working from home and various other things have “fundamentally changed this economy.”
“We don’t want to recognize that, we want to have an argument as to whether or not the economy has changed,” he added.
The economy has yet to return to the level seen before the pandemic, according to Bianco, who firmly believes this will not be the case. As a result, Bianco predicts "vastly higher inflation" that won't be 9 percent, but maybe 4 to 5 percent, and that the Federal Reserve needs to understand it isn't neutral after all.
Janet Yellen, Treasury Secretary in the Biden administration, has repeatedly claimed that soaring prices are just temporary and there is little risk of a recession.
2 August 2022