Bomb representing inflation made of us one hundred US dollar bills has been sparked and is about to explode on the global economy

Are Inflation Worries Mounting?

1 minute read
May 18, 2021

Worries among US top investors are mounting as the Fed is stuck between two bad choices: letting inflation spiral out of control or crash the markets.

We cannot help but say it once again: it seems that the Fed is getting tangled in a mess of its own making.

While Jerome Powell has kept ignoring the elephant in the room, a new red-hot inflation data report showed numbers that should make the Fed feel uncomfortable:

  • US inflation in April accelerated at its fastest pace in more than 12 years, with consumer prices leaping 4.2%.
  • Such an increase was well above expectations as economists were initially forecasting a 3.6% annual rise.

So it seems like inflation has, in fact, returned and could get worse.

In a previous SPOTLIGHT article, we warned that the Fed was increasingly stuck between two bad choices: letting inflation spiral out of control or have a market crash that could significantly weaken the economy.

A number of top investors and companies have already publicly expressed their worries about inflation:

  • Warren Buffett
  • Mohamed El-Erian
  • Janet Yellen
  • Sam Zell
  • Michael Burry
  • Kraft Heinz
  • Boston Beer Company
  • Unilever
  • Mattel Inc
  • Whirlpool Corp
  • etc.

Oh, and 87% of Americans, too.

It’s still too early to predict the full impact of inflation on the economy and stock market, but we’ll keep our finger on the pulse.