STUART VARNEY: For the past year, we've been told that inflation was "transitory". That it would eventually go away. Well it hasn't. If anything price hikes are getting worse. You can't let inflation fester. It just builds on itself.
So, the time to act is now.
Two "big things" are required. First, pause Build Back Better. This is not the time to signal yet more stimulus. The economy does not need it. We're flush with cash, chasing goods and services already in short supply.
Second: The Federal Reserve should start reigning in its money-printing, and it should raise interest rates early next year.
Don't be confused by all the technical jargon. The bottom line is this: there's too much money chasing too few goods, and if it’s not controlled soon, inflation gets worse, and the problem gets even more difficult to control.
Democrats will not be happy if Build Back Better is paused or vastly reduced in size. And they won't be happy if the Fed refuses to finance their massive spending plans. But if it’s managed properly, cutting demand now prevents a serious recession later.
It’s been decades since inflation tore through America. We've forgotten how bad it can be. But it’s back. It’s now voters' number one concern! If they really want to help America's vast middle class, the president and the fed should act now.