Two big stories broke today on the inflation front.
As you are well aware, the US is seeing its highest inflation rate in 40 years with no end in sight. In response to the record inflation Democrats want to spend more money.
The current inflation rate stands at 7.9%
On Wednesday Bloomberg reported that the average American household will face a $5,200 inflation tax this year. This is devastating!
The San Francisco Fed blames the current inflation rate on government spending.
Newsmax reported:
The San Francisco Federal Reserve on Monday issued a study suggesting that government spending bills passed during the Biden administration are contributing to current inflation.
“Fiscal support measures designed to counteract the severity of the pandemic’s economic effect may have contributed to this divergence by raising inflation about 3 percentage points by the end of 2021,” economists Òscar Jordà, Celeste Liu, Fernanda Nechio, and Fabián Rivera-Reyes from the study concluded.
The economists go on to note that while inflation is high in much of the world, for the United States, consumer prices have increased more than in similar countries. The authors contribute both the Rescue Plan and the CARES Act to inflation.