Mahoney Asset Management CEO Ken Mahoney said President Biden should focus on inflation, not COVID, on "Mornings with Maria" Friday, otherwise, producers will have to pass on rising costs to consumers.
KEN MAHONEY: COVID is obviously very important, of course. But look: the images we've seen this week in Los Angeles and the ports out there and all these bottlenecks that are creating, we can see with our own eyes, why this is happening? And yet the real issue there, the reason why they're stuck there, is we have to get trucks there and we don't have truck drivers.
And then you have Jen Psaki telling us this week that they've been working on this issue all year, as her Pinocchio nose keeps growing on that issue. And really, We're getting ourselves right now in a really kind of vicious cycle: wholesale prices that pass on to producers then pass on to consumers and keeps going round again.
And of the three, the producer price index is growing at the fastest rate. That's scary because these companies (producers) eventually are going to pass on to consumers. What a better time to pass on to consumers is around the holiday time? A little Scrooge in there, it gets a little Grinch.
But really, this is the time where producers are going to say, 'You know what? We're not going to eat this in our margins. We're going to start passing this to consumers.'
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