The US central bank said surging inflation is guiding its decision about when to lift interest rates. Two experts on financial markets explain what might happen next.
Used car and truck prices are up 31% over the previous year.
AP Photo/David Zalubowski
Inflation is rising at the fastest pace since Ronald Reagan was president.
Biden reappointed Jerome Powell, seated at left, to head the Fed. Some progressives wanted him replaced with Lael Brainard, seated right.
AP Photo/Manuel Balce Ceneta
After weeks of mulling, Biden decided to give Powell another term as Fed chair, which means he will have more influence over the trajectory of inflation than anyone else.
A big increase in use car prices drove the inflation rate higher in April.
AP Photo/David Zalubowski
The average price of US goods and services surged in April, leading some to worry the economy is beginning to experience dangerously high levels of inflation. A scholar explains why that’s unlikely.
Since its creation in 1999, the inflation rate in the euro zone has only exceeded 4 percent for a few months, on the eve of the Great Recession of 2008.
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Massive stimulus plans combined with rising production costs could lead to expectations that inflation will rise. And that alone could trigger an inflationary spiral not seen in 25 years.
A closed mobile money kiosk in Harare. Up to 50,000 small agents are affected countrywide.
Tampiwa Mahari/Great Gatsby Photography
The current lockdown in Zimbabwe is going to provide a stern test for its informal economy, which is the country’s dominant economy and employs 90% of people.
Robert Mugabe, former President of Zimbabwe, addressing media in Harare, in July 2018.
EPA-EFE/Yeshiel Panchia
The world’s most oil-abundant nation is heading for energy consumption levels not seen since the 1990s.
A supermarket in Caracas, Venezuela, in August 2018. The prospect of prices doubling every hour encourages those who can afford it to horde. Hence the empty shelves and shortages.
Miguel Gutiérrez/EPA
Venezuela’s hyperinflation has been caused by an inept public policy of printing more money and private individuals making the most of differences between official and unofficial exchange rates.
Zimbabwe erupted in violent protest after the government doubled the price of petrol.
EPA-EFE/Aaron Ufumeli
President Trump has been attacking the Fed’s current policy of slowly raising interest rates. A former central bank official explains why that’s so troubling.
Even the big, bad Wall Street bull is scared of inflation.
AP Photo/Richard Drew
While many market observers blame growing concerns about inflation for the stock market crash, the real culprit may be fears that the economy is about to slow.
Inflation may be a bull market’s greatest enemy.
AP Photo/Richard Drew
While many market observers blame the growing threat of inflation for the stock market crash, the real culprit may be concerns that the economy is about to slow.