Meanwhile, back at the economy we're staring at multiple profoundly frightening threats to our economic security

[JohnfrmClevelan]

Deflation or an increase in purchasing power would make inflation transitory. Neither happened (except in a few cases), so it is not transitory.

If you read 5 different financial publications, you get 5 different definitions.

If Trump drops all tariffs tomorrow, we could potentially reverse prices (deflation)

There won't be any instant recovery if trump drops tariffs. Like inflation, the damage is done. Assuming other countries enacted retaliatory tariffs, American businesses became instantly more expensive to foreign importers. Businesses don't - can't - wait around too long to see if things change; most have already found other sources to buy from or sell to.

 

[L88]

There won't be any instant recovery if trump drops tariffs. Like inflation, the damage is done. Assuming other countries enacted retaliatory tariffs, American businesses became instantly more expensive to foreign importers. Businesses don't - can't - wait around too long to see if things change; most have already found other sources to buy from or sell to.

I said potentially. Because I don't know and neither do you.

We definitely have damaged trade channels on export. Especially in ag. Imports will lower costs. Yes there maybe a delay. But if tariffs go away there will be lower costs. It won't take long in most industries to fill the pipeline for better currency than Russia or India.

Something to be concerned with is mass layoffs in domestic auto manufacturers. We forced them into all electric and it ain't selling. Toyota Honda and the Koreans have the best selection of different vehicles for different uses. Ford, GM, and Stelentias , are going to the fossil yard very quickly.

 

[Michael Cole]

Deflation or an increase in purchasing power would make inflation transitory.

No, I listed the qualifications.

Neither happened (except in a few cases), so it is not transitory.

If you read 5 different financial publications, you get 5 different definitions.

If Trump drops all tariffs tomorrow, we could potentially reverse prices (deflation)

Making up your own definitions for transitory inflation is fine by me. It's false, but if you won't listen to reason, I can't help you.

 

[L88]

No, I listed the qualifications.


Making up your own definitions for transitory inflation is fine by me. It's false, but if you won't listen to reason, I can't help you.

I'm not making anything up.
Transitory Inflation has many definitions from many sources.

The assertion that "inflation was not transitory" is widely accepted, with officials like Fed Chair Jerome Powell and Treasury Secretary Janet Yellen admitting the term was a mischaracterization, as the price increases were more persistent and longer-lasting than initially believed. While some initial price hikes were attributed to temporary factors like pandemic-related supply disruptions, the sustained nature of the inflation proved the "transitory" label inaccurate.

https://thehill.com/business/4529787-yellen-regrets-saying-inflation-transitory/

Fed Chair Jerome Powell stopped using the word "transitory" to describe inflation in late 2021 because it was no longer accurate and was misunderstood by the public. He explained that "transitory" implies an inflation surge that wouldn't have a permanent effect on the economy, but it was time to retire the word and be clearer about the persistence and drivers of inflation. In March 2025, Powell again used the word "transitory" to describe potential impacts of trade tariffs, indicating a potential shift in his stance on the word's applicability in different contexts.
Why "Transitory" Was Retired in 2021
Inflation Proved More Persistent:
Inflation was proving more powerful and persistent than initially expected.

https://www.cnbc.com/2021/12/02/powell-time-to-retire-transitory-what-it-means-for-the-ecb.html