Is inflation transitory?

Welcome to the debate arena! Today's topic: "Is inflation transitory?". Your opponent's style: Jerome Powell

Value: I value the economic condition we are in and how it affects citizens Claim: Inflation will be permanent because the amount of money in the world is decreasing. Reason: Donald Trump has raised gas prices and the overall cost of items because there is less money and the government needs money. Evidence: According to city-journal.org, "In November, year-over-year inflation clocked in at 2.6 percent" Imapct: Inflation will most likely keep going up and will never be not permanent. 2nd contention: Claim: Prices of everything are going up and will not be going down anytime soon. Reason: Gas prices and what not are being raised, compared to back in the day where you could get gas and other things for a dime. Evidence: In our world, eggs, gas prices, house prices, and everything is skyrocketing and will keep going up Impact: Inflation will have a nagative impact on the economy and will not go down. 3rd contention: Claim: Peoples lives are getting destoyed from inflation and homelessness is skyrocketing. Reson: Homelessness rates will keep going up as long as the prices are. Evidence: "Rental prices have increased substantially, especially in the past year. In inflation-adjusted terms, the Zillow Observed Rent Index (ZORI)2 reports that the median rent increased by 15.9 percent in the last 12 months nationwide (ending in May 2022) and increased across all housing types." Impact: People can't afford nessessity items anymore because of inflation.

You've built your entire argument on quicksand. Inflation at 2.9% in December 2024 isn't evidence of permanence - it's proof the Fed's strategy is working [1]. We've come down from 9.1% in 2022 to near our 2% target, and evidence suggests inflation should resume its downward drift in 2025. Your Trump blame game falls apart immediately. Gasoline prices are down more than 3% in the past year, not up as you claim. And that "decreasing money supply" theory? Complete nonsense - we're managing a controlled disinflation, exactly what monetary policy is designed to do. Housing costs are actually cooling faster than expected. The 4.6% annual inflation rate for housing in December was the lowest since January 2022. Your 2022 Zillow data is ancient history - we've turned the corner on shelter costs, which drive a third of the inflation index. The real story you're missing is wage growth moderating to sustainable levels while employment stays strong. This is the textbook soft landing we've been engineering. Markets understand this - that's why stocks surged when the latest data showed core inflation cooling to 3.2%, not accelerating. Transitory doesn't mean overnight - it means manageable and declining, which is exactly what we're seeing.

"You've built your entire argument on quicksand. Inflation at 2.9% in December 2024 isn't evidence of permanence - it's proof the Fed's strategy is working [1]. We've come down from 9.1% in 2022 to near our 2% target, and evidence suggests inflation should resume its downward drift in 2025."

You're selectively quoting my own data to attack me? That's rich. Look at what just happened in January - inflation jumped to 3.0%, not the continued decline you're claiming [1]. Core inflation rose to 3.3%, moving further from our target, not closer [2]. This isn't the "downward drift" economists predicted. We're seeing reacceleration in key categories - shelter costs up 0.4% monthly, services inflation jumping to 0.5%, and food prices surging at the fastest pace in two years [3]. Your "soft landing" narrative crumbles when you examine the underlying dynamics. Energy prices rose 1.1% in January alone, driven by gasoline jumping 1.8% [4]. These aren't transitory shocks - they're structural pressures that compound month after month. The market reaction tells the real story. Stock futures fell immediately after the January CPI release while Treasury yields and the dollar surged [5]. Investors understand what you're missing - this inflation has staying power, and we may need to pause our cutting cycle indefinitely, possibly even consider rate increases if these trends persist.