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Inflation: Is an ancient specter returning?

Inflation: Is an ancient specter returning?
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Inflation Is Here What Now?

The US jobs market is already generating inflation

© Alamy Global stockmarkets fell sharply early this week, with concern over US inflation. Technology shares were hit particularly hard: the tech-heavy Nasdaq 100 index has fallen by 5% since 1 May.  Investors’ US inflation expectations are at a 15-year high, says Naomi Rovnick in the Financial Times. The five-year break-even rate (the difference between the yield on inflation-linked five-year Treasuries and nominal five-year bonds) shows that investors expect average inflation of 2.73% over the next five years, the highest this figure has been since 2006. Spiking inflation could force the US Federal Reserve to tighten monetary policy sooner than expected. That would mean less liquidity sloshing around the market, which is negative for stock prices. 

NATIONAL DATA: April Jobs Disaster—Immigrants Poised To Displace Americans | Articles

The U.S. economy added only 266,000 jobs in April, well short of the 1 million or so expected by forecasters. And the unemployment rate rose to 6.1%, the first increase since April 2020. This was obviously a huge shock to the Biden Administration, which is frantically insisting that its extraordinary Covid-related unemployment payouts haven’t backfired in the labor market [ Issues and Insights,  May 10, 2021].But VDARE.com, in its nonpartisan way, can offer Biden some solace: immigrant displacement of American workers is still stalled, oddly, albeit at a high level. But the Immigrant Work Force is still surging. So, on present course, displacement will resume soon.

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