[gizmo]

The FED strategy is to do enough to keep the recovery going, but not so much that it overheats. GDP growth will over time make the debt burden bearable as interest rates tick higher.

With 10 million unemployed and 44% of households being behind on mortgage/rent/bills the economy is not going to roar back to life. With demand depressed because the actual economy hurting badly inflation will be moderate and temporary and deflation will remain the top concern of the Fed.

Of course we do see prices in some areas going up. Houses for instance. But that makes sense when you think about it. Nobody wants to move to a smaller house/apartment during a pandemic, and millions are simply not paying their mortgage instead of downsizing. Meanwhile those with money are moving away from cities and buying bigger places. The implications for housing prices are obvious. But this asymmetry won't last because the relief programs are temporary.

Burry believes that rising prices and some inflation proves we are at the cusp of Weimar Germany style hyperinflation. That is, at least for now, not borne out by the data in the slightest.