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Over the course of a year, consumer prices rose by 5.7%, the fastest surge of inflation seen in decades. Now, the omicron variant of COVID-19 is threatening any progress the country’s economy has made.
In the late 1970s when inflation surged to 7, 8, 9, up to 11%, it was a real hardship for Americans, every time they went to the store things cost more, people normally hate inflation. They can see it every day. They can feel the pain in the wallet.
Truth to say the US has not touched those levels of inflation yet, but the direction of inflation seen in recent months is one of the most troubling things for the economic recovery.
Which way inflation could go moving forward depends on a lot of things, the Fed controls the money supply, and when the society has inflation, they have got to pull back money supply, pull back on the dollars in the economy.
Some economists think next year, starting after a few days, the Federal Reserve Bank will start raising interest rates, however others think Fed should have done so six months ago. Another concern is fiscal policy in Washington, DC. America spent, on top of the normal budget, more than USD 3 trillion. That is deluging the economy with even more money.
President Joe Biden’s USD 2 trillion BBB plan may return in the New Year, even as Sen. Joe Manchin, D-W.Va., said last week he would oppose the bill due to inflation concerns.
If this bill is passed, some economists think it is a terrible bill, but if it is passed in the near future, it would be very much slimmed down, a Slim Jim version of the bill that was introduced earlier this year.
