Twitter CEO Jack Dorsey believes hyperinflation is an impending threat to the US economy - and will change everything
- Twitter CEO Jack Dorsey believes that inflation in the US will soon worsen.
- In a tweet, he said he expects hyperinflation to strike the US economy and the rest of the world.
According to Twitter CEO Jack Dorsey, inflation in the US is soon going to get considerably worse.
In a tweet on Friday, he wrote: "Hyperinflation is going to change everything," adding that "it's happening."
Hyperinflation is when inflation - the increasing price of goods and services - rises uncontrollably for a period of time. It is typically caused by an initial trigger such as a war, social uprising, or supply shock - an event that unexpectedly leads to a sudden increase or decrease in the supply of goods or services.
Dorsey's comment comes amid disruptions to the supply chain, which keep prices rising higher.
The Consumer Price Index - a commonly used measure of US inflation - rose 0.4% last month, the Bureau of Labor Statistics recently announced. That exceeded the median forecast of a 0.3% gain from economists surveyed by Bloomberg, Insider's Ben Winck and Andy Kiersz reported.
The US economy has been affected by supply bottlenecks, which are troubling businesses and consumers. Americans, who held back from spending through the Delta variant surge, have begun buying more products again. In fact, they are spending more than ever before.
Yet, massive order backlogs and shipment buildups at key ports have kept companies from matching supply with consumers' surging demand.
In response to a user comment, Dorsey added that he sees inflation escalating around the world, too. "It will happen in the US soon, and so the world," he tweeted.
Federal Reserve Chairman Jerome Powell also recently weighed in on the subject of inflation. He said he was more concerned about higher inflation than previously, CNBC reported.
At a recent virtual conference, Powell added that inflation pressures "are likely to last longer than previously expected," and that they could run "well into next year."