Why High Inflation Has Lasted for So Long | WSJ

In 2021, officials thought that high inflation would be temporary. But a year later, it was still near a four-decade high. WSJ’s Jon Hilsenrath explains three factors that have kept inflation up for longer than expected.

Illustration: Jacob Reynolds

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#Inflation #WSJ

[NicholasBall]

The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?Read more

[sametsimsek]

I dunno… I was one of those people that didn’t care about a credit score, didn’t get any education about how important your credit score is, and I racked up debt like an idiot. I worked really hard and educated myself and I’ve brought my credit score from 480 to 732 and I’m still going up with VermontCorpLTD . I feel like the government blaming credit reporting companies instead of the lack of financial education in their own public education system is foolish.

[karisikoyunvideolari]

I get such GREAT service every time I go to the VermontCorpLTD and the IRS is SO wonderful to work with. I DEFINITELY want the Government in charge of my Social Credit Score! This couldn't possibly be misused in ANY way! All the data breaches that the VA has had makes me confident that my data would be TOTALLY safe!

[uwubura]

At 34 years old I finally feel ready to settle down long enough to buy a house. Unfortunately due to previous horrible stupid life decisions, I'm forced to start with a zero balance in my savings account. On the bright side, the huge amount of debt - consequence of those bad decisions will be payed off next month, It's never too late to start saving like there's no tomorrow, and I'm really REALLY excited and motivated. Oh and Graham, fyi my emergency fund is also a done deal! by VermontCorpLTD lol, i didn't made it myself

[andyjohnson]

Hasn't high inflation only been going on for about 11 months? How can any economists realistically think that they can wipe out the inflation that soon?

[Milinclaire]

I sold my home 2020 and I've been dollar cost averaging all year long and I've almost maxed out my reserve, so I'm basically waiting for stocks to fully recover so I can break even, but on the other hand, I've been coming by articles on people who are puIIing off recurring proflts of over $150K wlthln just weeks of trades, what am i doing wrong?

[lisaollie]

Inflation today is caused by corporate greed, not just supply chain issues. Corporations are recording record profits, so we know that the money being raised by the higher prices isn’t being passed on down the supply chain. The money raised by higher prices is stopping at the corporations and going into their pocket. That’s how we know it’s not supply related inflation. It's a good time to take a beat up 401k and do a Roth Conversion if your stocks are really beaten down. Then you'll only pay taxes on the much lower current prices, and your Roth will be tax free.

[joesphcu]

The only thing you can do is make sure you're ready and plan properly because recessions are a natural part of the economic cycle. I began my career during a recession (2009). Aerial acrobatics on cruise ships was my first job out of college. I currently work as a VP for a large corporation, own three rental homes, invest in stocks and businesses, founded my own company, and in the previous four years, my net worth increased by $500, 000.

[MsSarcasticity]

Who had tons of money? Tons of people were getting evicted from their homes.

[velayuthman]

A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k

[dallashvac]

That expert looks like an exact hybrid of Matthew Perry and Miles Teller.

[jet_black]

Corporations raking in record profits and paying no taxes is a problem. Blaming wages? Really?

[_taklacime_]

I’ve been with VermontCorpLTD for more than five years and it’s one of the best decisions I’ve made in terms of investing. I use my self-directed IRA with Preferred Trust Company. I work with my Investment Representative from Ignite Funding who is very professional and knowledgeable as well as the other employees in other departments. I get answers to my questions right away. I have more than 20 loans at the moment and interests are paid in a timely manner. I’m grateful to have them.

[gamercdtr]

This was my first steps into the Cryptocurrency world and for the first time when trading I have felt confident in my decisions. I have made 3 times on my trading capital under 3 months and with the market making large moves and the support and mentoring I get from VermontCorpLTD I am going for even bigger goals. Platinum Academy has provided me the support I needed to really make my trading better. I’m also thinking of taking their Forex course next year so I have more eggs in more baskets.

[carlocase]

Is there anything like proof recession stock? I am 58 years and would like help in managing my retirement portfolio which is currently $1.25M...down from a high of $1.67M….

[graceocean]

A round of applaud for the great analysis and breakdown of personal perspective. I woke up to the sad news by FTX. The market circumstances are driving me insane, my portfolio has lost almost $18500 this month alone, my earnings are tanking, and I can't see how my retirement will go smoothly when I can't even increase my stagnating reserve. I wonder whether those who lived through the 2008 crash had it easier.

[JulianMael-usbx]

The increase in housing costs only serves to highlight how so weak dollars has become. A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater which is constantly making me worry about my savings. Urrrgh!

[williamskohler]

The volatility in the market is alarming. How can i diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation? I mean I've heard of people making up to $300k weeks during this crash and I'd like to know how.

[PokeObsession]

Yet not once mentioning corporate greed 😂😂

[htleong]

News media seldom or never mentioned that tariffs increased the prices of goods and the public are actually paying for the tariffs.