The Permanence of Inflation: A Wall Street Guru's Warning

Jim Grant, editor of "Grant's Interest Rate Observer," believes that inflation is permanent and that the Federal Reserve will be cautious in cutting interest rates due to inflation remaining above the central bank's target level. Grant argues that the Fed is hesitant to declare victory over inflation prematurely and expects any rate cuts to be gradual and later than the market anticipates. Despite the Fed's efforts to control inflation, Grant asserts that purchasing power lost to inflation cannot be regained. The US Consumer Price Index increased by 3.1% over the year in November.