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Herd Immunity Is Over—Long Live Superimmunity

Forget about herd immunity. Covid-19 vaccines and prior infection don’t provide lasting protection against infection and transmission, especially with the Omicron variant. That makes it impossible for enough of the population to become immune to stop the virus from spreading.

But don’t despair. Omicron will give much of the population what some scientists call “superimmunity”—stronger protection against new variants and even future coronaviruses. Normal life will be possible even as the virus continues to spread and mutate. Superimmunity won’t necessarily stop people from being infected or transmitting the virus. But most people who get infected, even with a more virulent variant, will experience mild or no symptoms.

To understand why, consider how the immune system works. Two types of white blood cells, T- and B-cells, tag-team to vanquish invading pathogens. T-cells act as sentinels that circulate in the lymph nodes and bloodstream. When they spot an invader, they kick into action. One type of T-cell destroys infected cells. Another signals B-cells, the immune system’s force multipliers, to proliferate and secrete antibodies that neutralize the pathogen. Antibodies target proteins on the pathogen known as antigens.

Once the army of white blood cells and their antibody foot soldiers have defeated the virus, most die off. But some white blood cells that remember the pathogen persist and hone their combat skills. These so-called memory T-cells continue to reside in the bone marrow, lymph nodes and other tissues, ready to mobilize the immune system if they encounter the intruder again.

Meantime, memory B-cells go to boot camp in the lymph nodes, where they get into better fighting shape should the invader return. Memory B-cells train to produce antibodies that can block new variants. When and if the virus reappears, they can more rapidly reproduce and produce more-potent antibodies.

Vaccines emulate natural infection by training the immune system with a pseudo-virus or antigen—in the case of Covid-19, the spike on the surface of the virus that it uses to bind to human cells. Antibodies produced after vaccination tend to decline more rapidly than after infection, perhaps because the virus particles persist longer in the body than the vaccine-simulated antigens.

With both infection and vaccination, the immune system gets quicker, stronger and smarter after being exposed to a new challenge. Researchers have found that people who were infected by Covid-19 and later vaccinated crank out higher levels and a broader array of antibodies that last longer than do people who have only been vaccinated.

Similarly, a study last month by the Oregon Health and Science University found that vaccinated people who experienced breakthrough infections produced higher levels of antibodies that were up to 1,000% more effective than those generated two weeks after a second dose of the

Pfizer

vaccine. The researchers described this as superimmunity.

“I think this speaks to an eventual end game,” said co-author Marcel Curlin. “It doesn’t mean we’re at the end of the pandemic, but it points to where we’re likely to land: Once you’re vaccinated and then exposed to the virus, you’re probably going to be reasonably well-protected from future variants.” Dr. Curlin added: “Our study implies that the long-term outcome is going to be a tapering off of the severity of the worldwide epidemic.”

A study last month from South Africa found that people who were infected with Omicron produced antibodies that were more than four times better at neutralizing the Delta variant. Booster vaccines also improve the immune response by giving B-cells more time to mature—one reason antibodies after three Pfizer shots are capable in lab experiments of neutralizing Omicron while those after two aren’t.

But boosters train the immune system against the same target. Omicron’s myriad mutations create a bigger challenge for the B- and T-cells, and thereby strengthen the immune response. To use an analogy, if you train at doing push-ups, you’ll get stronger—but not as strong as if you also did pull-ups.

Infection also strengthens the T-cell response. T-cells from vaccinated people have been found to retain 70% to 80% of their efficacy against the Omicron variant spike protein. This has helped prevent more severe illness, even though vaccine antibodies are less effective against Omicron.

But infection trains T-cells to recognize virus proteins that also are less likely to mutate than the spike. Some of these proteins share similarities with the original SARS virus as well as four coronaviruses that can cause the common cold. SARS survivors have been found to have memory T-cells 17 years after infection that also recognized parts of the Covid-19 virus. A new study from the U.K.’s Imperial College found that people with pre-existing T-cells to non-spike proteins in common-cold coronaviruses were less likely to get infected with Covid-19.

All of this suggests that infection with Omicron is likely to stimulate potent and durable protection against Covid-19—and potentially other coronaviruses—even if it mutates to become more virulent. As Omicron rapidly spreads, people who have been vaccinated or previously infected will develop superimmunity. Covid-19 will become a virus that causes cold- and sometimes flulike symptoms—annoying but rarely deadly or disruptive.

One caveat is that older people generate weaker T-cell responses and memories to infections and vaccines. They’re likely to need annual booster shots. Omicron will end the pandemic by making Covid-19 endemic.

Ms. Finley is a member of the Journal’s editorial board.

Journal Editorial Report: Paul Gigot interviews Dr. Marty Makary. Images: AP/AFP/Getty Images Composite: Mark Kelly

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The Warren-Biden Bank Heist – WSJ

Elizabeth Warren

finally got her woman—that is, the Senator and her many acolytes in the Biden Administration have succeeded in ousting

Jelena McWilliams

as chair of the Federal Deposit Insurance Corp. The coup deserves attention because of its norm-breaking precedent and what it signals for bank mergers and supposedly independent regulatory agencies.

Ms. McWilliams resigned on Dec. 31, effective Feb. 4, to avoid more turmoil at the bank regulator. But as she wrote in these pages on Dec. 16, her resignation comes amid a concerted and unprecedented political effort to strip her of authority before her term as chair expires in June 2023.

***

The coup has been led by

Rohit Chopra,

the Warren protege who now runs the Consumer Financial Protection Bureau and is one of four current members of the FDIC board (one post is vacant). The FDIC’s longstanding practice and bylaws, based on its interpretation of the law, is that the chair sets the board’s agenda.

Every administration for 88 years has honored that understanding, including the supposedly norm-breaking Trump Administration. Democrat

Martin Gruenberg

was allowed to continue as chair until June 2018 after President Trump took office, and no one attempted to oust him.

Enter the Warren-Biden progressives in a hurry. The Senate confirmed Mr. Chopra on Sept. 30 on a 50-48 vote, and as soon as Oct. 31 he presented Ms. McWilliams with a request for information (RFI) on bank mergers. When she said the draft RFI would have to be vetted by FDIC staff, Mr. Chopra publicly released his own RFI without authority from his post at the CFPB, which the FDIC was obliged to contradict.

Mr. Chopra then moved to neuter Ms. McWilliams by other means. He has asked the Office of Legal Counsel at the Justice Department for an opinion on whether Ms. McWilliams can set the agency’s agenda. In a Dec. 14 statement, Mr. Chopra also threatened to “take further steps to exercise independence from management” of the FDIC.

This distorts the meaning of agency “independence,” which is supposed to be from the executive branch. Mr. Chopra cites President Biden’s July 9 executive order referring to bank mergers, but the FDIC has long held that it is not subject to executive orders on policy. Mr. Chopra wants to make the FDIC a de facto part of the Biden Administration. Who knew the left endorsed the originalist constitutional theory of the “unitary executive”?

Our sources say the plan was for Mr. Chopra and his allies on the board—Mr. Gruenberg and acting Comptroller of the Currency

Michael Hsu

—to change the FDIC bylaws and strip Ms. McWilliams of her power. Ms. McWilliams made the honorable decision to spare the agency more internal fighting, but her resignation means Mr. Chopra will now essentially run the show. Mr. Gruenberg will become acting chair. He will follow where Mr. Chopra wants to go, as he showed by signing a joint statement with Mr. Chopra on his draft RFI on Dec. 9.

The real power behind all this is Sen. Warren, who has planted her aides and camp followers throughout the Biden Administration. She may have lost the 2020 Democratic primaries to Mr. Biden, but she has colonized the government’s financial regulatory offices.

Her former staffer,

Bharat Ramamurti,

is deputy director of the White House National Economic Council. His fingerprints were all over the failed nomination of Saule Omarova to be Comptroller of the Currency.

Wally Adeyemo,

who helped Ms. Warren establish the CFPB, is now deputy Treasury secretary. Lina Khan runs the Federal Trade Commission.

Graham Steele,

a former aide to Warren Senate ally

Sherrod Brown,

is assistant Treasury secretary for financial institutions. There are many others.

One result is that Treasury Secretary

Janet Yellen

seems to have little influence over financial regulation. Ms. Omarova wasn’t her choice for Comptroller. Ms. McWilliams sought her support for the FDIC’s traditional independence, but Ms. Yellen refused. Her main job these days seems to be telling the public not to worry about inflation.

***

What do these Warren cadres hope to accomplish? One clear goal is greater influence over the allocation of credit. Using regulation to squeeze financing for fossil fuels will be a priority. Bank mergers are a political target because regulatory approval can be exploited as a tolling station to coerce money for “local communities,” to use Mr. Chopra’s euphemism for progressive political groups.

Mr. Chopra also wants to reinterpret the law to make it easier to block bank mergers, notably those that have more than $100 billion in assets. This is a coordinated effort. His Dec. 9 RFI mentioned that figure. On Dec. 10

Maxine Waters

sent a letter to federal officials urging a moratorium on bank mergers above $100 billion. On Dec. 17 the Justice Department’s Antitrust Division issued a press release praising Mr. Chopra and promising heightened antitrust review of bank mergers.

The irony is that regional banks are merging to gain economies of scale to compete with giant banks. The 2010 Dodd-Frank Act increased compliance costs, which the biggest banks find easier to afford. Blocking mergers of regional banks will enhance the market power of JP Morgan and Bank of America.

By undermining the independence of federal agencies, Democrats are also creating a precedent that the GOP will follow. The next Republican President will promptly fire the next FDIC chair, among other officials.

The FDIC coup should also focus the Senate’s attention on Mr. Biden’s pending nominees for the Federal Reserve, another supposedly independent bank regulator. Anyone who endorses the FDIC coup shouldn’t be confirmed.

Democrats claim that Trump Republicans broke political norms, and sometimes they did. But one reason is that they see how progressives trample norms when they have power. Watch the Warren left in action.

Journal Editorial Report: What’s Plan B for a faltering legislative program? Images: Bloomberg/Getty Images Composite: Mark Kelly

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The Fickle ‘Science’ of Lockdowns

‘Follow the science” has been the battle cry of lockdown supporters since the Covid-19 pandemic began. Yet before March 2020, the mainstream scientific community, including the World Health Organization, strongly opposed lockdowns and similar measures against infectious disease.

That judgment came from historical analysis of pandemics and an awareness that societywide restrictions have severe socioeconomic costs and almost entirely speculative benefits. Our pandemic response, premised on lockdowns and closely related “non-pharmaceutical interventions,” or NPIs, represented an unprecedented and unjustified shift in scientific opinion from where it stood a few months before the discovery of Covid-19.

In March 2019 WHO held a conference in Hong Kong to consider NPI measures against pandemic influenza. The WHO team evaluated a quarantine proposal—“home confinement of non-ill contacts of a person with proven or suspected influenza”—less indiscriminate than the Covid lockdowns. They called attention to the paucity of data to support this policy, noting that “most of the currently available evidence on the effectiveness of quarantine on influenza control was drawn from simulation studies, which have a low strength of evidence.” The WHO team declared that large-scale home quarantine was “not recommended because there is no obvious rationale for this measure.”

A September 2019 report from Johns Hopkins University’s Center for Health Security reached a similar conclusion: “In the context of a high-impact respiratory pathogen, quarantine may be the least likely NPI to be effective in controlling the spread due to high transmissibility.” This was especially true of a fast-spreading airborne virus, such as the then-undiscovered SARS-CoV-2.

These studies drew on historical experience. A separate 2006 WHO study concluded that “forced isolation and quarantine are ineffective and impractical,” based on findings from the Spanish flu pandemic of 1918. It pointed to the example of Edmonton, Alberta, where “public meetings were banned; schools, churches, colleges, theaters, and other public gathering places were closed; and business hours were restricted without obvious impact on the epidemic.”

Using data from a 1927 analysis of the Spanish flu in the U.S., the study concluded that lockdowns were “not demonstrably effective in urban areas.” Only in isolated rural areas, “where group contacts are less numerous,” did this strategy become theoretically viable, but the hypothesis wasn’t tested. While the study found some benefits from smaller-scale quarantines of patients and their families during the 2003 SARS outbreak, it concluded that a fast-spreading disease, combined with “the presence of mild cases and possibility of transmission without symptoms,” would make these measures “considerably less successful.”

Medical historian

John Barry,

who wrote the standard account of the 1918 Spanish flu, concurred about the ineffectiveness of lockdowns. “Historical data clearly demonstrate that quarantine does not work unless it is absolutely rigid and complete,” he wrote in 2009, summarizing the results of a study of influenza outbreaks on U.S. Army bases during World War I. Of 120 training camps that experienced outbreaks, 99 imposed on-base quarantines and 21 didn’t. Case rates between the two categories of camps showed “no statistical difference.” “If a military camp cannot be successfully quarantined in wartime,” Mr. Barry concluded, “it is highly unlikely a civilian community can be quarantined during peacetime.”

A Johns Hopkins team reached similar conclusions in 2006: “No historical observations or scientific studies” could be found to support the effectiveness of large-scale quarantine. The scientists concluded that “the negative consequences of large-scale quarantine are so extreme . . . that this mitigation measure should be eliminated from serious consideration.” They rejected the modeling approach for relying too heavily on its own assumptions—circular reasoning that confuses a model’s predictions with observed reality.

Even at the outset of Covid-19, the unwisdom of lockdowns guided mainstream epidemiology. When the Wuhan region of China imposed harsh restrictions on Jan. 23, 2020,

Anthony Fauci

questioned the move. “That’s something that I don’t think we could possibly do in the United States, I can’t imagine shutting down New York or Los Angeles,” Dr. Fauci told CNN. He likely had the scientific literature in mind when he advised that “historically, when you shut things down, it doesn’t have a major effect.”

What caused the scientific community to abandon its aversion to lockdowns? The empirical evidence didn’t change. Rather, the lockdown strategy originated from the same sources the WHO had heavily deprecated in its 2019 report: speculative and untested epidemiological models.

The most influential model came from Imperial College London. In April 2020, the journal Nature credited the Imperial team led by

Neil Ferguson

for developing one of the main computer simulations “driving the world’s response to Covid-19.” The New York Times described it as the report that “jarred the U.S. and the U.K. to action.”

After predicting catastrophic casualty rates for an “unmitigated” pandemic, Mr. Ferguson’s model promised to bring Covid-19 under control through increasingly severe NPI policies, leading to event cancellations, school and business closures, and ultimately lockdowns. Mr. Ferguson produced his model by recycling a decades-old influenza model that was noticeably deficient in its scientific assumptions. For one thing, it lacked a means of even estimating viral spread in nursing homes.

The record of Mr. Ferguson’s previous models should have been a warning. In 2001 he predicted that mad cow disease would kill up to 136,000 people in the U.K., and he chastised conservative estimates of up to 10,000. As of 2018 the actual death toll was 178. His other missteps include predicted catastrophes for mad sheep disease, avian flu and swine flu that never panned out.

We evaluated the performance of Imperial’s Covid-19 predictions in 189 different countries at the first anniversary of their publication, March 26, 2021. Not a single country reached the predicted mortality rates of their “unmitigated spread” or even the “mitigation” model—the latter premised on social-distancing measures similar to what many governments enacted. Even Mr. Ferguson’s extreme “suppression” model, which assumed a strict lockdown curtailing public contacts by 75% for over a year, predicted more deaths than occurred in 170 of 189 countries. Imperial predicted up to 42,473 Covid deaths in Sweden under mitigation and 84,777 under uncontrolled spread. The country, which famously refused to lock down, had some 13,400 deaths in the first year.

Despite the failed predictions of these models, the Imperial team rushed a study to print in the journal Nature in June 2020, claiming that lockdowns had already saved 3.1 million lives. It remains the most heavily cited pro-lockdown study in epidemiology, despite its premature claims and its circular reliance on its own model to arrive at this figure.

In reality, lockdown stringency is a poor predictor of Covid-related mortality. Our examination of the 50 U.S. states and 26 countries found no discernible pattern connecting the two—a basic expectation if lockdowns performed as “the science” often insists.

So why did public-health authorities abandon their opposition to lockdowns? Why did they rush to embrace the untested claims of flawed epidemiological modeling? One answer appears in the Johns Hopkins study from 2019: “Some NPIs, such as travel restrictions and quarantine, might be pursued for social or political purposes by political leaders, rather than pursued because of public health evidence.”

Mr. Magness is director of research and Mr. Earle a research faculty member at the American Institute for Economic Research.

Covid-19 is an ever-mutating virus, so rather than panic and reimpose pandemic restrictions when new strains like Delta and Omicron are discovered, the world should learn to live with them. Image: Christopher Furlong/Getty Images Composite: Mark Kelly

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Vladimir Putin Names His Price

Russian President Vladimir Putin on Dec. 17.



Photo:

Alexander Shcherbak/Zuma Press

Russia has spent the fall massing troops and weaponry along Ukraine’s borders, laying the groundwork for a potential invasion. On Friday the Kremlin made its demands public. The U.S. and Europe have delivered a mixed response so far and will have to do more to deter

Vladimir Putin.

Moscow wants NATO to rule out eastward expansion and roll back military activity in a range of theaters, according to draft documents sent to the U.S. and allies this week. This would mean blocking Ukrainian accession to the alliance and effectively banning NATO forces from being stationed in member states like Poland, Estonia, Latvia and Lithuania.

“The line pursued by the United States and NATO over recent years to aggressively escalate the security situation is absolutely unacceptable and extremely dangerous,” a Russian foreign ministry official said, apparently without irony. “Washington and its NATO allies should immediately stop regular hostile actions against our country.”

Regarding “hostile actions,” Russia and Russian-backed forces invaded Georgia in 2008 and Ukraine in 2014. Both countries would like to join NATO but haven’t been granted membership. NATO has deployed token numbers of troops as a deterrent in the Baltic states and Poland, though only after Mr. Putin snatched Crimea in 2014.

Mr. Putin isn’t worried that Latvian troops will march on Moscow. His goal is Kremlin hegemony over Central and Eastern Europe, which have prospered under Western security and economic arrangements. His invasion threat is a power play to win concessions from the Europe and West such as President Biden’s decision in May to waive sanctions against the company behind the Nord Stream 2 gas pipeline from Russia to Germany.

Western officials have said Moscow won’t have veto power over NATO expansion, but the risk of concessions is always present. “There will be no talks on European security without European allies and partners,” White House press secretary

Jen Psaki

said Friday. NATO’s eastern flank should have a prominent role in talks, especially after they were rightly infuriated by a recent Biden proposal that only a few allies negotiate with Russia over Ukraine.

President Biden and European leaders have warned Mr. Putin that invading Ukraine would lead to the toughest sanctions to date, but it’s unclear how far they’d go. The U.S. has refused to target Mr. Putin or Russia’s access to the Swift financial clearing system despite repeated cyber attacks on the U.S.

Meanwhile, Mr. Biden continues to dawdle over providing more military assistance to Ukraine. Kyiv wants helicopters and other equipment that had been earmarked for Afghanistan before the Taliban takeover.

But the White House fears this would provoke Mr. Putin. This is the same logic that caused President

Obama

to refuse to send Javelin antitank missiles to Ukraine. President

Trump

sent the Javelins when he took office without repercussions. Arming Ukraine might not stop Mr. Putin from invading, but it would raise the cost if he does invade.

The White House has also lobbied Congress to hold off sanctions on Nord Stream 2. Mr. Biden seems to believe that improving trans-Atlantic relations requires deferring to narrow German economic interests, but NATO has 30 members and the European Union has 27. Many are unhappy with Mr. Biden’s approach.

Mr. Putin’s demands show his growing confidence, and perhaps a belief that the West will do nothing serious to stop him. Mr. Biden and Europe certainly haven’t so far.

Joe Biden came to office promising he’d take a tough stance with Vladimir Putin, but his foreign policy decisions to date haven’t deterred Russia amassing thousands of troops in readiness to invade Ukraine. Images: Getty Images/Maxar Composite: Mark Kelly

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the December 18, 2021, print edition.

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Forced Covid Vaccination for Kids Is Unlawful

Now that the Food and Drug Administration has authorized the Pfizer -BioNTech vaccine for 5- to 11-year-olds, expect a wave of Covid-19 vaccine mandates for children. San Francisco announced last week that the city will require children in that age group to show proof of vaccination to enter restaurants, sporting events, swimming pools and more. New York’s School of American Ballet informed parents via email on Nov. 4 that all students—the school enrolls children as young as 6—must receive a Covid vaccine by January.

While parents may choose to vaccinate their own children, these mandates are unethical and unlawful. Advocates of mandating Covid vaccines equate them with standard childhood shots against polio, chickenpox, TDaP (tetanus, diphtheria and pertussis) and MMR (measles, mumps and rubella). But those decades-old vaccines have gone through the full FDA testing regime. The Covid vaccine has received only emergency-use authorization for this age group, meaning its safety and efficacy have not yet been established to the FDA’s satisfaction.

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Higher Inflation Is Here to Stay for Years, Economists Forecast

Americans should brace themselves for several years of higher inflation than they’ve seen in decades, according to economists who expect the robust post-pandemic economic recovery to fuel brisk price increases for a while.

Economists surveyed this month by The Wall Street Journal raised their forecasts of how high inflation would go and for how long, compared with their previous expectations in April.

The respondents on average now expect a widely followed measure of inflation, which excludes volatile food and energy components, to be up 3.2% in the fourth quarter of 2021 from a year before. They forecast the annual rise to recede to slightly less than 2.3% a year in 2022 and 2023.

That would mean an average annual increase of 2.58% from 2021 through 2023, putting inflation at levels last seen in 1993.

“We’re in a transitional phase right now,” said

Joel Naroff,

chief economist at Naroff Economics LLC. “We are transitioning to a higher period of inflation and interest rates than we’ve had over the last 20 years.”

The inflation measure—the Commerce Department’s core price index of personal-consumption expenditures—jumped 3.4% in May from a year earlier, the biggest increase since the early 1990s.

What Mr. Naroff and the other survey respondents describe is a generational shift from the lower inflation of the past two decades, a shift that could create new challenges for households, policy makers and investors who came to expect inflation closer to or below 2%.

If the economists prove correct, Federal Reserve officials might have to raise rates sooner or more than they expect to keep inflation under control.

The Fed’s preferred inflation gauge—the overall PCE index, which includes food and energy prices—rose 3.9% in May, nearly double the central bank’s 2% target. The Fed, in a report released Friday, repeated its view that inflation has picked up this year due to bottlenecks, hiring difficulties and other “largely transitory factors” related to the economy’s rebound from the effects of the pandemic. Most officials, in projections released last month, believed inflation would decline to around 2% over the next two years, though there was greater uncertainty over how quickly they might need to raise interest rates to get inflation there.

The U.S. inflation rate reached a 13-year high recently, triggering a debate about whether the country is entering an inflationary period similar to the 1970s. WSJ’s Jon Hilsenrath looks at what consumers can expect next.

At the Fed’s June policy meeting, most officials projected they would raise interest rates from near zero by 2023. Several expected to raise rates next year. In March, most officials expected to hold rates steady through 2023.

Some 58% of the economists surveyed don’t see the Fed raising interest rates until the second half of 2022 or later.

“Inflation is expected to surge longer and longer—longer than the Fed previously thought,” said

Diane Swonk,

chief economist at Grant Thornton. “The Fed is now likely to raise rates in the first half of 2023, although some Fed presidents will be nipping at the bit to move sooner.”

Some respondents worry the Fed could move too slowly. “The danger is that monetary authorities are behind the curve,” said Kevin Swift, chief economist at the American Chemistry Council. “I’m not saying hyperinflation is around the corner, just that a lot of things have come together in the last year, and the overall trend of costs across the board is growing faster than in the last five or 10 years.”

Core PCE inflation rose just 1.7% annually, on average, between 1995 and 2019. Now the Fed wants inflation to overshoot 2% for a while to make up for that shortfall.

Another key measure of inflation, the Labor Department’s consumer-price index, which tends to run hotter than the PCE index, leapt 5% in May from a year before, the most in nearly 13 years. Survey respondents expect the department to report Tuesday that the CPI rose 4.7% in June from a year before. They expect the rate to fall to 4.1% by year’s end. Their CPI forecasts for next year and 2023 hover between 2.4% and 2.7%.

Supply-chain bottlenecks, higher shipping costs and labor shortages might prove temporary as the market adjusts to disruptions. However, the combination of plentiful federal stimulus funding, an unprecedented stockpile of household savings and the rollout of vaccines is driving a surge in consumer demand, enabling many businesses to raise prices significantly for the first time in decades. If households and businesses start to expect rising prices, that dynamic can become self-fulfilling.

There are signs that consumers are starting to anticipate higher inflation. Consumer inflation expectations—the rate of inflation the median consumer expects five to 10 years from now—climbed to 2.8% in June, about the same rate as in 2014, according to the University of Michigan Survey of Consumers.

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Higher inflation for several years would ripple through the economy in various ways. Consumers could find their household budgets squeezed. Higher borrowing costs could weigh on stock values and could crimp growth in interest-rate-sensitive industries like housing. Higher inflation can also make it harder for businesses to plan longer-term investments.

“It’s disruptive—you can’t be sure of what your costs are, whether you can get supplies or what the costs will be six months from now,” Mr. Swift said. “I’d hate to be in the construction business trying to bid on a job when you don’t know what the cost of steel will be 18 months from now.”

The Wall Street Journal survey of 64 business, academic and financial forecasters was conducted July 2-7. Not all participants responded to every question. The survey archives and forecast data can be found here.

Write to Gwynn Guilford at gwynn.guilford@wsj.com and Anthony DeBarros at Anthony.Debarros@wsj.com

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Bangladesh Turns 50 – WSJ

Americans today are much better informed about Bangladesh than they were when Henry Kissinger described it (not without reason) as a “basket case” in 1971, the year it achieved independence. That label stuck to Bangladesh like a malign limpet, and proud Bangladeshis have for decades resented the shadow it cast over their resilient and entrepreneurial land.

Friday marks the 50th anniversary of the independence of Bangladesh—formerly East Pakistan. On March 26, 1971, Sheikh Mujibur Rahman, the wildly popular secessionist leader of the Bengalis, declared independence from the Punjabi-dominated Pakistan of which it was an incongruous part. (A country of two wings—West and East—Pakistan was separated by 1,300 miles of India.) After the declaration of independence, a brutal civil war ensued. The number of Bengali civilians killed is a matter of dispute: the Central Intelligence Agency estimates 200,000, while Bangladeshis assert three million were murdered. Bangladesh was not, in fact, rid of Pakistan until Dec. 16, 1971, when the Pakistani army surrendered. Yet in choosing March 26 as their Independence Day, Bangladeshis made a very Bengali choice: elevating their state of mind over their objective reality.

Bangladesh today is a country transformed. Twice decolonized—first from Britain, next from Pakistan—it is a rare example of a constitutionally secular Muslim-majority nation. Most Bangladeshis adhere to a relatively tolerant form of Islam, born of centuries of cohabitation with Hindus, and it is one of the few Muslim countries that are winning the fight against radicalization. With the erosion of secularism in neighboring India, it’s possible to argue that Bangladesh is the most secular country in South Asia.

The government of Sheikh Hasina, Rahman’s daughter, is committed to stamping out Muslim fundamentalism. Yet its methods often come at the expense of democracy. Sheikh Hasina, in her third consecutive term as prime minister, is widely accused of rigging the last election, in 2018. Her actions were driven by hubris and paranoia: Neutral observers believe she would have coasted to victory without resorting to fraud.

If the West is squeamish about having to suppress its criticism of an authoritarian leader because her regime curbs Islamism, it should have no trouble appreciating the many areas in which Bangladesh has made progress. In human-development indexes, Bangladesh has not only outstripped Pakistan but effectively reached parity with India. In just one example—key in a poor and overpopulated country—the fertility rate in Bangladesh (2.04 births per woman) has fallen below India’s (2.22). Even on its own terms, Bangladesh has made remarkable strides: its infant-mortality rate is 25.6 deaths per 1,000 live births, as compared with 148.2 at independence; life expectancy, 72.3 years today, was 46.6 in 1971.

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