While the U.S. is just one month from a full recovery from COVID-19 impacts on the gross domestic product, economist Stephen Moore warns of inflation proving to be a storm cloud on an otherwise sunny summer outlook.
"We have some storm clouds that are forming, and a big one is this inflation threat," Moore told Sunday's "The Cats Roundtable" on WABC 770 AM-N.Y. "We have to take it seriously.
"The Fed and [President Joe] Biden have to be very alert to: We don't want to see this get out of control."
Moore called on the administration and the Federal Reserve to "do something about" about impending inflation.
"We're seeing big increases in gasoline prices; we're seeing big increases in food prices, meat prices, produce prices; lumber prices are rising; used car prices are rising; airline tickets are rising in price," Moore told host John Catsimatidis.
"If we have a continuation of the inflation we've seen over the last month, we're talking about 9% or 10% inflation. Now, I hope that doesn't happen, but it's about time the Fed and the Biden administration do something about it."
But there is a sunny side of the economic revival, which is being driven by the COVID-19 vaccines settling the unrest of the global coronavirus pandemic.
"It's one of these good news, bad news stories," Moore said. "The good news is that the market is booming. We're getting jobs back at a record pace. Businesses are reopening. I think it's a great story; I love it.
"I think it's largely attributable to the vaccine, and that COVID is pretty much behind us."
The U.S. GDP is on pace to return to pre-pandemic. Trump administration levels by next month, according to Moore.
"The economy by next month – by my projections and others, as well – will be 100% recovered, which is pretty amazing in terms of our GDP," he concluded. "We will be producing as much goods and services starting in June as we were back in January of 2020, and that's a remarkable performance. Trump and Biden deserve credit for that."
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