While the global market is enthusiastically discussing the issue of high inflation, Wharton Professor Jeremy Siegel issued a shocking warning: the US inflation rate may exceed 20% in the next two to three years.
In an interview with CNBC, Jeremy Siegel said that if the United States continues to supply currency at the current rate, then the 20% inflation rate may be easily reached in the next two to three years.
For example, he said that in this year alone, the money supply in the United States has increased by nearly 30%.
Currency will not disappear out of thin air, always find a place to go, they will be spent, pushing prices to a higher level. Unprecedented currency explosive growth, unprecedented financial support, I think they are a bit too much. The first place they choose is the financial market, the stock market. After that, once the economy reopens and we are on the cusp of the storm, inflation will explode.
He pointed the finger at the Fed, believed that the Fed led by Powell was not doing anything, and criticized the Fed for not taking any restraint measures when it saw inflation rise. "Powell is the most dovish Fed chairman I have ever met."
In his view, the Fed chairman's stance on inflation may cause trouble in the future.
However, Jeremy Siegel also expressed an optimistic view of the US stock market based on the same considerations. He believes that it is precisely because of the current monetary and fiscal easing that the US stock market can maintain its upward trend.
Submitted May 16, 2021 at 05:11AM by Lin_xue_0216 https://ift.tt/2S18tHN
