‘Damn Santa didn’t take the transitory inflation away,’ quips bitcoin booster Jack Dorsey, as CPI surges to nearly 40-year high

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Pricing pressures, stemming partly from COVID-induced supply-chain disruptions, are rippling around the world and forcing central banks to adopt a more belligerent monetary-policy stance, and the recent surge in prices is on those corners. is not lost. Markets that would normally ignore macroeconomic trends.

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On Wednesday, tech publisher and bitcoin evangelist Jack Dorsey quipped that US inflation seemed far from temporary in a recent report released by the government.

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Dorsey’s tweet, in response to another from macroeconomic expert and cryptocurrency enthusiast Lynn Alden, featuring a chart of rising consumer prices, comes after consumer inflation read a 7% hit.

The Labor Department said the consumer-price index – which measures how much consumers pay for goods and services – rose 7% in December from the same month a year earlier, up from 6.8% in November, since 1982. Fastest pace and third straight month in which inflation exceeded 6%.

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Dorsey’s remarks may have been a very veiled reference to Federal Reserve Chairman Jerome Powell and other policymakers and economists, who consistently referred to this current bout of inflation as a pandemic-led event that was “transient”. “Or short-lived.

In testimony before the Senate Banking Committee in November, however, Powell announced it was high time to retire the word “transient”, which had become a nuisance for the US central banker because its meaning was not clearly defined. How the Fed sees the transient.

“we use [ transitory] That means it won’t leave a lasting mark in the form of higher inflation,” Powell told Senate lawmakers in November. “I think it’s probably a good time to retire that word and do more of what we want to say.” Try to explain clearly.”

The average American, however, is increasingly dwelling on the term and trying to understand its implications.

On Tuesday, the word inflation was one of the top trending words on Twitter, in the top 2, at last check:

Twitter

And it was also the top three trending search terms on Google in the last 24 hours.

Google

Dorsey, Joe Block Inc. run sq,
+0.65%,
(nee Square Inc.), is a booster of digital currencies like bitcoin and ether ETHUSD,
+4.44%,
Many shared the view that those virtual assets could help mitigate the effects of inflation.

Meanwhile, the market was finding it hard to find a foothold, with many investors betting that the Fed would raise interest rates at least four times in 2022 as it battles inflation. Dow Jones Industrial Average DJIA,
+0.14%,
s&p 500 index spx,
+0.33%
and Nasdaq Composite Index Comp,
+0.50%
Wednesday is flipping between gains and losses, while Dorsey’s company Block Inc.

Bitcoin was changing hands at around $43,600, up about 2%, while Ether on the Ethereum network was enjoying a rise of around 4%, to around $3,370.

Dorsey in October Tweeted that “hyperinflation” – defined as rapid and unrestrained price increases that run at 50% per month or more – “will change everything.” Those comments drew flak from economists and others, including a detailed rebuttal from Arch Invest founder Cathy Wood.

Kathy Wood says Jack Dorsey’s ‘hyperinflation’ call is not true

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