- Inflation is here to stay, and the Federal Reserve is leaving the economy and everyday Americans at risk by keeping rates so low, one bond expert says.
- “Everyday Americans are having a very difficult time with food inflation, which is running very close to 30% and 40%,” said Gilbert Garcia, a managing partner at Garcia Hamilton & Associates.
Inflation is too high and the central bank needs to move quicker to get it under control by raising interest rates, said Gilbert Garcia, a managing partner at Garcia Hamilton & Associates in Houston.
“I wished we’d retire the word ‘transitory,'” Garcia said, at the CNBC Financial Advisor Summit on Wednesday, speaking of predictions that the recent rise in prices are temporary.
“Inflation is running at 6%, probably well over 6%, no matter how you look at it,” he added. “It’s pretty clear that it’s longer than transitory and it’s much hotter than their inflationary target.”
Episodes of U.S. inflation
Consumer price index, percent change from a year ago
Oil shocks
Korean War
Supply
Iraq invades
Late 1960’s
Gas price
economic
disruptions
Note: Periods of heightened inflation are shaded.
Source: Bureau of Labor Statistics (CPI), White House (inflationary periods through ‘08). Data is
seasonally adjusted and as of Oct. ’21.
Episodes of U.S. inflation
Consumer price index, percent change from
a year ago
Korean War
Late 1960’s economic expansion
Oil shocks
Iraq invades Kuwait
Gas price spike
Supply chain disruptions
Note: Periods of heightened inflation are shaded.
Source: Bureau of Labor Statistics (CPI), White
House (inflationary periods through ‘08).
Data is seasonally adjusted and as of Oct. ’21.
Episodes of U.S. inflation
Consumer price index, percent change from a year ago
Oil shocks
Korean
Supply
invades
1960’s
economic
Gas price
disrup-
tions
Note: Periods of heightened inflation are shaded.
Source: Bureau of Labor Statistics (CPI), White House (inflationary periods through
‘08). Data is seasonally adjusted and as of Oct. ’21.
