Kansas City Fed Wars Against Inflation Forever

A local conservative blog catches this dire warning . . . Here are the basics for all of those who understand that the paper in their pocket is merely a promise . . .

“It is widely believed that the longer inflation remains elevated, the greater the risk that high inflation will become self-reinforcing and thus embedded in the economy,” Amaze Lusompa wrote in the bank’s Economic Bulletin. “For example, workers experiencing high inflation are more likely to demand higher wages to compensate for rising costs. These higher wage costs, together with other increasing input costs, can cause firms to increase their prices to protect profit margins. In economic theory, this phenomenon is described as a wage-price spiral.”

Read more via www.TonysKansasCity.com link . . .

KC Fed economist: Inflation could become embedded if rate remains high

(The Center Square) - The longer inflation remains above the Federal Reserve's annual target of 2%, the harder it will be to reduce, according to an economist with the Federal Reserve Bank of Kansas City.