Inflation could reach 20 %

 Business Insider:

Wharton professor Jeremy Siegel said inflation could spike to 20% in the next two or three years due to "unprecedented" fiscal and monetary stimulus and an explosion of the US money supply.

"I'm predicting here that over the next two, three years, we could easily have 20% inflation with this increase in the money supply," Siegel said in a recent interview with CNBC.

Siegel went on to criticize Fed chair Jerome Powell for not acting to quell inflation in the near term.

The Wharton professor called Powell the "most dovish chairman" that he's ever seen and said that the Fed chair's stance could "be a problem down the road."

In the meantime, Siegel said he is bullish on stocks because fiscal and monetary support is going to keep flowing in.

Siegel noted that the total money supply in the US has gone up almost 30% since the start of the year alone.

"That money is not going to disappear. That money is going to find its way into spending and higher prices," Siegel said.

"The unprecedented monetary expansion, the unprecedented fiscal support, you know, I think excessive, was first going to flow into the financial markets, into the stock market, and then once we're reopening, and we're right at that cusp, it was going to explode into inflation," he added.
...

He sees the stock market as a hedge against inflation.  That is little comfort to people living from paycheck to paycheck. 

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