democrats are moving ahead with this, and they may rue the day. if people don t see gas and grocery and heating bill prices beyond that come down as a result of this massive tax and spend plan, people are going to be unhappier than today, and they are not happy the direction of the country, 75%. big banner, inflation reduction act around the spending package. most economists would say not much of an impact, maybe higher inflation initially, maybe lower later if the projections turn out. but i think eventually it is more of an inflation risk because it s basically diminishing the productive sector of the economy. it s a big wealth transfer. sandra: in the form of higher taxes for business. and reduced incomes for everybody in the economy. it s also, it s moving to the
walmart move that we re seeing here, cutting prices on general merchandise. how are you reading that? that is what normally happens in a cycle. prices go up, demand gets destroyed, companies suffer not only on the cost side, their costs going up, but the revenue side starts coming down, and they start losing sales, so what do they do? they cut prices. that s why i think we reached a peak of inflation for now, and the issue is going to shift very quickly to the recession risk as opposed to the inflation risk we have been dealing with. what is the back side of that peak look like as a timeline for inflation, though? absolutely right to ask that. it doesn t look good. inflation is likely to be sticking on the way down, and because the fed is so late, the inflationary process has gotten entrenched and is quite wide, so the fall inflation will not be sharp enough and that s why the
or lose it. there are lots of leases out there that are not being drilled right now. everybody s got to have hands on deck. this is something that s going to be a challenge for all of us. i filled up my car this weekend. it s a kick in the pants. there is no question that it hurt. as 2 president said he grew up in a house held that when the price of gas goes up, they felt it. he sees it. he feels it. he ll continue to work on doing all he can do. janet yellin said she expects inflation to, quote, remain high in the u.s. but watch what she told me the other day when i asked about her comments minimizing the risk of inflation last year. listen to this. wasn t it a mistake, madam secretary, to downplay this inflation risk? is did that contribute to the problems we re all seeing right now? well, look, i think i was wrong then about the path that inflation would take. as i mentioned, there have been