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Blame the Fed? Think Again—Inflation Is Coming From All Sides

Barry Ritholtz pushes back on the simplistic narrative that inflation is purely caused by “money printing” or Fed policy. He argues that today’s inflation is driven by sector-specific supply shocks, not central bank action.

Here’s what’s really driving prices higher:

• Housing: Severe underbuilding since 2008 plus pandemic-fueled second-home buying.

• Autos & Insurance: Supply chain shortages (esp. semiconductors) and pandemic disruptions led to fewer new/used cars and expensive repairs.

• Home Insurance: Climate change and increased weather disasters have made coverage far more expensive.

• Eggs: Avian flu has killed millions of chickens, reducing supply.

• Beef: Drought and rising feed costs are pushing prices up.

• Health Insurance & Drug Prices: U.S. healthcare is plagued by lobbying, rent-seeking, and monopolistic pricing—costing more and delivering worse outcomes than global peers.

• Tariffs: The new 15% tariffs act as a “persistent tax” on consumers, not a one-time hit—raising baseline prices for imports long-term.

Ritholtz argues that blaming the Fed or money supply alone misses the complex, real-world drivers behind rising prices—and that many inflationary pressures have nothing to do with monetary policy. Read More. 

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$18,000 Gone Overnight: Social Security Collapse Just Years Away

A new analysis by the Committee for a Responsible Federal Budget (CRFB) warns that Social Security’s retirement trust fund will be insolvent by late 2032, triggering an automatic 24% cut in benefits for 62 million Americans, unless Congress intervenes.

Key findings:

• Automatic Cuts: Federal law mandates benefits be reduced to match incoming payroll tax revenue once the trust fund is depleted.

• Impact on Retirees: A middle-income, dual-earning couple retiring in 2033 could lose $18,100 annually; lower-income couples would face cuts of $8,200–$11,000.

• Long-Term Outlook: Without reform, benefit cuts could exceed 30% by 2099.

• Root Cause: Fewer workers are supporting more retirees. The worker-to-beneficiary ratio has fallen from 8.6 (1955) to 2.8 (2013).

• Compounding Crisis: Medicare’s hospital fund also faces depletion by 2033, with an 11% cut to healthcare benefits looming.

CRFB warns that politicians promising not to touch Social Security are, in effect, endorsing massive cuts by default. Read More.