Twitter's Dorsey Warning Inflation About to 'Change Everything'
Twitter CEO Jack Dorsey is sounding the alarm that inflation in the United States is about to “change everything.”
In a tweet Friday, Dorsey warned the worst is yet to come.
“Hyperinflation is going to change everything. It's happening,” he wrote.
Hyperinflation is when inflation — the increasing price of goods and services — rises uncontrollably for a period of time, triggered by an event that unexpectedly leads to a sudden increase or decrease in the supply of goods or services.
Dorsey's warning comes after consumer price inflation rebounded in the wake of new disruptions to the supply chain that are triggering continued rising prices.
The Consumer Price Index, which measures a broad basket of consumer goods prices, increased at a 5.4% annual pace when including food and energy costs, the fastest in 30 years, CNBC reported.
The Federal Reserve‘s preferred gauge, which measures personal consumption expenditures excluding food and energy, is at a 3.6% year over year pace — ahead of the central bank’s 2% target, CNBC noted.
“We see that. We know how painful that is” for consumers, Federal Reserve chairman Jerome Powell said at a virtual conference Friday, the Wall Street Journal reported.
“We think we can be patient and allow the labor market to heal,” he said. But at the same time, “no one should doubt that we will use our tools to guide inflation back down to 2%” if it looked like more persistent inflationary pressures were taking root, he added.
Fed officials argue current price increases are driven by supply-chain shocks, high demand for goods over services and a labor shortage, all related to the COVID-19 pandemic — and all transitory.
“Supply-side constraints have gotten worse,” Powell said, the Journal reported. “The risks are clearly now to longer and more-persistent bottlenecks, and thus to higher inflation.”
Dorsey predicted inflation will be rising around the world as well.
“It will happen in the US soon, and so the world,” he tweeted.
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