What is inflation

Chris also touches on how far he expects the RBA to raise rates, and the broader consequences on asset prices such as his expectations of a 15-25% reduction in ...

Chris founded Coolabah Capital back in 2011 and is also contributing editor to the AFR. Prior to starting Coolabah, Chris worked at both Goldman Sachs and the RBA. Finally, David and Chris also discuss recent geopolitical events such as Russia's invasion of Ukraine, as well as the additional ongoing risks that geopolitical events pose to financial markets and asset prices. Chris also touches on how far he expects the RBA to raise rates, and the broader consequences on asset prices such as his expectations of a 15-25% reduction in residential real estate prices as rates continue to rise.

U.S. Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and the Biden administration would likely increase ...

Yellen has come under fire from Republicans after acknowledging she was wrong last year in forecasting that inflation would be transitory and quickly subside. Register now for FREE unlimited access to Reuters.com "So it can't be the case that the bulk of the inflation that we're experiencing reflects the impact of the ARP." Register now for FREE unlimited access to Reuters.com "We're seeing high inflation in almost all of the developed countries around the world. Register now for FREE unlimited access to Reuters.com

The Treasury secretary's recent comments about rising prices have put the Biden administration on the defensive.

“We have the fastest recovery of any developed country,” Ms. Yellen said. By May of last year, Ms. Yellen appeared to acknowledge that the Biden administration’s spending proposals had the potential to overheat the economy. “I am ready to retire the word transitory,” Ms. Yellen said at a December event sponsored by Reuters, noting that new virus variants had muddled the economic outlook. “Secretary Yellen is our chief spokesperson on the economy,” Mr. Deese told Fox News last week. Ms. Yellen also pushed back against the idea that an expanded child tax credit that was included in the stimulus package had a significant impact on inflation. “The consensus didn’t see the overheating risk,” Mr. Summers said. Over the weekend, Ms. Yellen came under fire again after an excerpt from a forthcoming biography of her indicated that she had sought unsuccessfully to pare down the pandemic aid bill because of inflation concerns. After months of pinning rising prices on temporary supply chain problems that would dissipate, Ms. Yellen acknowledged last week that she had gotten it “wrong,” putting the Biden administration on the defensive and thrusting herself into the middle of a political storm. In recent weeks, Ms. Yellen has had to defend the Biden administration’s economic policies even as fault lines have emerged within the economic team. She has clashed publicly at times with critics such as Lawrence H. Summers, a former Treasury secretary, who warned that too much stimulus could overheat the economy. She said Mr. Biden’s proposed clean energy initiatives and plans to reform the prescription drug market were measures that could lower costs for Americans. As a result, Ms. Yellen’s role in crafting and selling the $1.9 trillion American Rescue Plan, which Congress passed in March of last year, is being parsed amid an intensifying blame game to determine who is responsible for the highest rates of inflation in 40 years.

The US Treasury Secretary says there is no question the US is facing cost-of-living pressure and that it “is really our top economic problem at this point”.

“In designing a policy there are various risks that need to be taken into account,” Ms Yellen said. “Putin’s war in Ukraine is having impacts on energy and food prices globally,” she said. “I do expect inflation to remain high, although I very much hope that it will be coming down.” The hearing was on Mr Biden’s 2023 budget proposal. “Senator, we’re seeing high inflation in almost all developed countries around the world, and they have very different fiscal policies,” Ms Yellen said in response to Montana Republican Steve Daines. “It can’t be the case that the bulk of the inflation we’re experiencing reflects the impact of the ARP.” Treasury Secretary Janet Yellen told US legislators peppering her on Tuesday (Wednesday AEST) with questions about the surge in the cost of living that inflation is likely to stay high and that she ought not to have termed big price increases as “transitory” last year.