Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Annelise Capossela/Axios

It's been 40 years since America last saw a damaging level of inflation. Yet despite that — or perhaps because of it — inflation fears are widespread, and could even become self-fulfilling.

Why it matters: The government's strategy for bringing back employment and widespread prosperity involves a necessary — yet temporary — increase in inflation. When an entire generation has never experienced such a thing, that can be disconcerting. And for the time being, Americans are not buying what the government is selling.

Data: BLS via FRED; Chart: Axios Visuals

By the numbers: Inflation hasn't arrived yet. Nevertheless, 77% of Americans are worried about inflation being too high, with the degree of concern highest among younger adults who have no firsthand knowledge of how it feels.

  • Americans now expect the price of gas to rise at a 9.9% pace, and the price of rent to rise at a 9.3% pace — far more than rents have been rising so far.

What they're saying: The Federal Reserve — whose job is to worry about inflation — isn't worried. "We do expect that inflation will move up over the course of this year,” said Fed Chair Jay Powell in congressional testimony last month. “Our best view is that the effect on inflation will be neither particularly large nor persistent.”

  • The White House agrees. "In the next several months we expect measured inflation to increase somewhat," economists Jared Bernstein and Ernie Tedeschi wrote this week. That inflation, they said, "will likely be transitory," and "should fade over time as the economy recovers from the pandemic."

Not everyone is on the same page. Former Treasury secretary Larry Summers, most prominently, is concerned that inflation will pick up and that no one will expect it to come back down again.

  • When inflation expectations rise significantly, that can itself cause inflation, as vendors raise prices to try to get in front of it.

The bottom line: Maybe only Gen X is qualified to adjudicate the question of whether higher inflation is likely to stick around.

  • "I was born in 1970," said Harvard's Jason Furman on Twitter. "Anyone born earlier was overly scarred by inflation. And anyone born later doesn’t have enough experience with it to really understand."
  • "Only those of us born in 1970 should be allowed to discuss the topic."

Go deeper

Bernie Sanders: U.S. must recognize that "Palestinian rights matter"

Sen. Bernie Sanders. Photo: Stefani Reynolds via Getty Images

The United States must encourage an immediate cease-fire in the Middle East and adopt an "evenhanded approach" that recognizes Palestinians and Israelis have a right to "live in peace and security," Sen. Bernie Sanders (D-Vt.) wrote in a New York Times opinion on Friday.

Driving the news: Violence escalated this week after Israelis intensified efforts to evict Palestinians from their homes in Jerusalem. Hamas fired rockets and Israel massed troops, leaving more than 125 Palestinians and seven people in Israel dead.

3 hours ago - Technology

Exclusive: Uber makes new hire, launches anti-racism campaigns

Illustration: Aïda Amer/Axios

Eager to show progress on the pledge to make its platform and business anti-racist, Uber on Friday announced new anti-racism driver and rider campaigns, as well as fresh internal hiring practices, Axios was first to report.

Why it matters: Uber is one of the biggest ride hailing companies in the world. Its decisions impact the millions that use the platform, where drivers and riders alike say they have experienced racism.

Ex-Gaetz associate admits to sex trafficking, will cooperate with federal prosecutors

Rep. Matt Gaetz (R-Fl) speaks during the "Save America Summit" at the Trump National Doral golf resort on April 09, 2021 in Doral, Florida. Photo: Joe Raedle/Staff via Getty Images

Joel Greenberg, a former associate of Rep. Matt Gaetz (R-Fla.), has agreed to cooperate with federal investigators and admitted to a variety of federal charges including sex trafficking a minor, the New York Times reported Friday citing court papers.

Why it matters: Investigators believe Greenberg introduced women to Gaetz for paid sex and are looking into the Florida congressman's alleged sexual relationship with a 17-year-old girl. Greenberg could be a key witness as federal prosecutors decide whether to charge Gaetz.