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Hedge Fund Manager Kyle Bass Estimates U.S. Inflation at 12%
Joshua Caplan

Appearing Tuesday on CNBC’s Squawk Box, hedge fund manager Kyle Bass estimated that the United States’ inflation rate is approximately 12 percent.

A transcript is as follows: 

REBECCA QUICK: As someone who is looking to invest in the market, what do these higher numbers mean? What does that mean for the Fed?

KYLE BASS: When you look at the inflation numbers, these are chain-weighted inflation numbers. These are numbers that are designed to be artificially be low. If you look at a non-chain-weighted index of inflation, we think it’s running about 12 percent, and with short term interest rates still at zero, that means people who have money in the bank, in their savings, are losing 5 to 12 percent of their purchasing power annually. We have 34 percent more money in the US system than we did 14 months ago. Of course we’re going to have inflation and it’s going to be significant.

“Investors and savers and retirees need to think about how to maintain the purchasing power of their capital,” Bass concluded.


Josh Caplan is the Founder and Chief Activist Officer of Tea of the People. Josh holds a Bachelor of Arts in Political Science from Concordia University, a certificate in Comprehensive Project Management from McGill University and completed the Advanced Project Management program at Stanford University. Josh is a Fellow at the Royal Society for the encouragement of Arts, Carnegie New Leader at the Carnegie Council for Ethics in International Affairs, Young Leader at the Center for Strategic and International Studies and an Emerging Leader in Environmental and Energy Policy at the Atlantic Council.

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