During a Thursday appearance on Fox Business Channel, Breitbart Economics Editor John Carney predicted a resurgence of inflation in the U.S. economy that will “disrupt everybody’s narratives.”
Inflation is not going away, and the only thing "going down" is the percentage by which it expands year over year.
That $200 grocery list you lament today will still be $200 (at least) in a year.
The Biden administration is ephemeral.
Bidenflation is forever.
— RazörFist (@RAZ0RFIST) July 21, 2023
Carney made the comments in a Tuesday interview with Fox Business host Larry Kudlow, where he discussed the rising price of oil and housing as telltale signs of a coming surge in inflation.
“The only reason oil is as cheap as it is is because China has been lagging behind,” he explained.
Carney went on to predict that communist China will soon “put a bunch of stimulus into the economy” because President Xi Jinping “cannot afford to have the economy be growing as slow” as it currently is.
‘So, they’re going to come back,” he continued. “Oil is going to go up, but it’s not just oil. Look at what’s happening to home prices — up four months in a row. So that’s not going to be weighing on CPI much longer… Shelter is about 40% of CPI.”
“So, we’re going to have a resurgence of inflation that is going to disrupt everybody’s narrative,” Carney added. “Everybody said inflation is coming down. I don’t think we have a real reason to believe that inflation will continue to come down from where it is right now.”
He then predicted that Federal Reserve Chair Jerome Powell would announce a hike in interest rates at his July 26 press conference.
“We’re heading tomorrow to a hike,” Carney claimed. “The Fed has signaled that they want to hike one more time. I actually think that what’s going to happen is that when we get a resurgence of inflation in the next couple of months, what we’re going to see is the Fed is going to have to do the thing that nobody in the market expects right now. It’s going to be really disruptive to everything, which is they’re going to have to hike again in the first quarter of next year and people will be shocked.”
While Powell did not end up announcing an interest rate hike — much to the surprise of the media — he did signal that there will likely be at least two more rate hikes this year, which comes after the Biden administration raised interest rates ten straight times in desperate attempts to combat skyrocketing inflation.
Kudlow responded to Carney’s claims by questioning whether a resurgence of inflation could push the U.S. economy towards a “second recession next year.”
“I think we will be in a recession next year,” Carney agreed. “The question is when. Right now, we look like we’re growing 2%. Again, we grew two percent in the first quarter [and] probably 2% in the second quarter, we’ll find out later this week. I don’t think we will enter a recession this year. I used to think it was going to be first quarter of next year. But we’re so strong right now on so many things… too strong to actually go negative until probably the second quarter of next year.”
“So, I keep pushing this back, which seems ridiculous because we keep saying the recession is coming. It’s just not coming yet,” he concluded.