Well sure it is, we aim for some inflation on purpose.
If you mean inflation above 2% is here to stay, maybe, but 2% was an arbitrary target anyway. It doesn't make much difference whether it's around 2% or hovering between 2% and 3%.
If you think it's going to go much higher I'd like to hear why.
It is mainly about credibility.
If they want 3% instead of 2%, they should hit the 2% target first, keep it there for a few years, then increase to 3%.
If the target was no change in prices, we wouldn't say inflation is infinity percent off target every month.
Inflation, growth and defaults.
Trump has already de facto seized, and the Republicans in the Congress ceded, the power of the purse. Do you really think impounding interest payments is beyond the pale of possibility?
A balanced budget is a popular idea in theory, but very few people actually want to see it happen once they find out what their own cost will be. The politicians are going to do whatever it takes to mollify voters and keep their jobs.
When Democrats leave surplus or just lower speed at which debt goes up ... debt is still their fault.
I truly hope so, otherwise the only buyers for US Treasuries will be Social Security.
Defaulting on sovereign US debt would be something that would make me rapidly look for an exit from the United States.
It will happen in phases: 30 year bonds become 100 year bonds, foreign countries get payments, delayed, etc.