Here are 3 big reasons why Peter thinks inflation might rise even higher this year.

1. The Fed wants to boost Biden's reelection

The Fed is deeply influenced by political dynamics and, with the 2024 presidential election around the corner, it's already maneuvering to align with the political incumbent.

"I think that the Fed is going to be doing everything it can to try to reelect Biden or whoever may run if Biden does not… The Fed chairman always wants to play ball with whichever Administration is in power."

This has less to do with blatant political bias and more to do with self-preservation.

The President plays a decisive role in appointing the Fed chair. Given this, Jerome Powell is incentivized to prioritize monetary policies that could boost a Biden reelection. And that's exactly what we're seeing.

The Fed already announced considerably lower interest rates in 2024 through 2025, strategically timed for this year's US election.

Peter predicts that the Fed will continue its dovish, inflationary policies through the end of this election year.

2. US Economic "Strength" Rides on Inflation

The perceived strength of the US economy is largely illusory, a facade created by inflationary policies rather than genuine economic growth.

Peter explains that higher stock market indexes and other financial indicators in 2023 reflect investor expectations of inflationary Fed stimulus rather than genuine economic progress:

"Investors are anticipating a big bond rally. That's what they think. The Fed is going to going to go back to zero or close to it back to quantitative easing. And so they're factoring all this in. They're pricing this easing cycle into the markets now. They're betting on it."