Jim Paulsen of the Leuthold Group went on CNBC and argued that higher inflation is good for the economy. At least inflation higher than the Federal Reserve's 2% goal. Based on data since 1982, Paulsen has concluded that higher inflation brings out more aggressive economic behavior by both businesses and consumers. This optimal inflation he sees as the sweet spot is 3% to 3.25%. He argues that the Fed's 2% goal brings pessimism and caution to the economy and naturally slows down growth.
Market bull Jim Paulsen downplays inflation fears, sees rising prices contributing to an economic boom
Market bull Jim Paulsen downplays inflation fears, sees rising prices contributing to an economic boom
