US Inflation Will Keep Falling, Intertemporal’s Pellegrini Predicts

The rate will drop so quickly that it will unnerve the Federal Reserve, he says.

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Inflation in the US is going to continue falling, says founder of Intertemporal Economics Brian Pellegrini, and much faster than one might think. He joins Merryn Somerset Webb on this week’s episode of Merryn Talks Money to share his predictions. Indeed, the rate of inflation will drop so quickly that it will unnerve the US Federal Reserve, he says.

Pellegrini contends signs of the decline can be seen in inventory levels, factory prices in China and the labor market. He argues that it’s also reasonable to think the Fed will turn to monetary easing in the not-too-distant future, claiming the central bank has become politicized by the Biden administration.

Going forward, he warns that if interest rates stay too low this time around, there’s every chance of another inflation explosion. So what should investors do? Pellegrini says look at energy and look at agriculture. And if you ever have to choose between gold or Bitcoin, choose gold, he says. We can be almost certain people will still value gold in a decade, says Pellegrini. We can’t say that about Bitcoin.

(Updates with Biden administration in second paragraph. An earlier version corrected the spelling of Brian Pellegrini’s name.)

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