EDITOR NOTE: The most recent CPI numbers came in at 5.4%. This is the highest level since 2008, and one expert believes this is not the peak. Every market is telling the Fed that rates should be rising to help combat inflation, yet the Fed refuses to budge. They are keeping rates low in a “legalized Ponzi scheme,” which is “artificially making the wealthy much wealthier,” according to market strategist Todd Horwitz. The market expert points to the fact that only the wealthy are truly getting the super-low, 2%-2.5% interest rates to borrow, while the middle class is actually getting rates where they should be, at 4% or higher. Horwitz believes that the Biden Administration’s current fiscal policy and the Fed’s refusal to enact a more forward-looking policy could lead to double-digit hyperinflation.
July's consumer price index (CPI) data was released Wednesday, with headline CPI coming in at 5.4%, the same reading as June's. Todd Horwitz, chief market strategist at BubbaTrading.com, said that this is not the peak.
"I think it's going to get a lot higher. I think we're in a lot of trouble because of the policies of the Administration that's in power and of course, the Federal Reserve," Horwitz told David Lin, anchor for Kitco News.
Interest rates will have to rise as a result. In fact, they should already be much higher now, Horwitz said.
"I think we have a chance for hyperinflation and I think you'll see much higher inflation going forward unless they step up and allow these rates to be normalized and be where they should be, which is 4%, 5%," he said.
Originally posted on Kitco