For the average American consumer, and those now living with the malicious joke that has become the Biden economy, we are all wondering just what happened to our friend Transitory Inflation? If you remember, transitory was the “buzzword” of choice when inflation initially reared it’s ugly head a few years back. It was a word parroted by not only members of the Biden administration, but also by the Fed, many notable award winning economists, and of course, the mainstream media. It seems that for some time, wherever experts gathered to discuss the economy, our friend Transitory Inflation was always present.
So…just to make sure I understood who Transitory Inflation was and exactly why I had nothing to worry about when the subject came up, I took the time to look up the meaning of transitory in Webster’s Dictionary. In particular, what were Transitory’s credentials?
Transitory: Continuing only for a short time; not enduring; fleeting; evanescent.
OK! It was clear that Transitory Inflation was our friend. It would rescue us from that monster that we all knew was inflation. It would be tamed by our new super-hero, Transitory.
What Happened to Our Transitory Friend?
So what happened to our friend Transitory? What happened to our hero?
Well, just as in Samuel Beckett’s Waiting for Godot, the Fed’s hero, Transitory, never showed up. In fact, we are all still waiting for Godot. And if you are still “Bidening” your time away and waiting patiently for our mystery guest to appear and sign in, here are some of the latest recent results of the Biden economy:
- Credit Card Debt Hits $1 Trillion: Consumers are living on credit cards. Credit Card debt spiked $45 billion in the last quarter alone.
- Rents Continue to Outpace Wage Growth: The average share of household income spent on rent hit 32%
- Vehicle Costs up 14%: That’s right. The costs of owning and operating a vehicle is up 14% in the last year alone according to AAA. There is now only one car model affordably priced under $20,000 in the U.S.
- More Americans are Living Paycheck to Paycheck: According to a recent Lending Club report, 61% of consumers are living paycheck to paycheck
- Food Costs Remain Stubbornly High: Almost 70% of households are either “extremely” or “very worried” about food and drink inflation. Bread alone is up 30% since 2020
We Made a Mistake
So in the end, the Fed’s Jerome Powell and Janet Yellen finally admitted their mistake with the use of their fictitious hero “Transitory Inflation”. In fact, that Godot-esque character was always an inflation myth. A phantom.
But there is good news on the horizon. According to CNBC, the word “transitory” has now been replace by Powell with “vigilant”. CNBC reports that:
Federal Reserve Chair Jerome Powell recently called for continued vigilance in the fight against inflation, warning there may even be more interest rate increases to come.”
So while we wait for our new Fed hero, Vigilance Inflation to work it’s magic, tell us how bad your wait for Transitory Inflation has let you down. In fact, we’d like to know how much the Fed’s inflation fighting phantom and no-show is now costing you monthly just to make ends meet. Let us know by completing this month’s poll in Factoring Broker Magazine.
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