| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3651 Registered: 05-2011 Rating: N/A |
Turn around the corner? 1. – Year-over-year inflation remained elevated in July, but the monthly data moderated, providing support to the view that higher inflation will be likely be transitory. Still, it’s only one month and we won’t know for sure until well into 2022. Inflation may end up higher than where it was before the pandemic, but that’s kind of what the Fed is shooting for. 2. COVID-19 cases are on the rise again, especially in regions with low vaccination rates. The delta variant is much more transmissible, kids are showing more vulnerabilities, and schools are re-opening. What could go wrong? The University of Michigan’s consumer sentiment survey showed a large drop in expectations in the report for mid-August, reflecting the delta surge. Declines were widespread across income, age, and education subgroups and losses covered all aspects of the economy, from personal finances to views on inflation and the national economy. 3.Hospitals in Texas and Florida are filling up. For the vaccinated, there’s a much smaller chance of hospitalization, but there’s reduced scope for treating other health emergencies due to a lack of beds in intensive care. Vaccination rates have picked up and self-protection should help to reduce cases, but we’re likely to see somewhat slower growth (although still strong) in the near term. |