KEVIN HASSETT: So what’s going on is that the Biden inflation, it’s not the Putin inflation, it’s the Biden inflation, and we can talk about why, has produced such a high inflation rate that wages just can’t keep up. And so what’s happening is that prices are going up faster than your income. So therefore, your real income is going down. National income is what GDP is. When national income declines two quarters in a row, that’s a recession. And right now, everybody’s incomes in real terms are declining. And so we’re very, very close, if not already in a recession.
The fact is that inflation is really out of control. I heard when you were playing that clip that they said we’re nowhere near 15%, which is the all-time high. OK, well, actually, if you take this month’s inflation number and annualize it, just pretend it’s this month for the rest of the year, then you get 14% inflation. And so the 8.5 that people are talking about, that’s backward-looking, including a whole big chunk of last year when there wasn’t much inflation, but it’s accelerating, and the Fed is way behind the curve.