Republican Talking Points on Inflation Start To Deflate

After months of fear mongering about inflation rates, Republicans are watching another talking point quickly deflate as the markets increasingly show inflation is an expected result of our country reopening and is predicted to be temporary. President Biden and Democrats have done exceptional work to help our economy recover, putting millions of dollars into the pockets of Americans, who in turn are spending at small businesses. 

Associated Press: White House: Markets showing little worry about inflation

  • “The financial markets appear to be backing Biden’s case that any price increases are the fleeting result of the United States restarting after the lockdowns caused by the coronavirus pandemic.”
  • “As of Monday, the 5y5y was trading at 2.28%, an indication that annual inflation will be close to the Federal Reserve’s 2% target. The charts suggest that inflation expectations — despite the recent bump in prices — are within the realm of expectations over the past 15 years. They also show that market expectations of coming inflation have essentially been flat in recent months.”

CNBC: Most professional investors agree with the Fed on inflation, Bank of America survey shows

  • “The closely watched gauge of professional investors indicates that Wall Street is in line with the Federal Reserve’s view that recent price pressures will lighten up as the year goes on and eventually recede to normal levels. Some 73% of respondents said they see inflation as ‘transitory,’ while just 23% say it is permanent.”

Reuters: U.S. consumer sentiment rebounds in early June – survey

  • “U.S. consumer sentiment rebounded in early June as inflation fears subsided and households grew more optimistic about future economic growth and employment, a survey showed on Friday.”