KenH
Well-Known Member
"The Federal Reserve is the agency that manages the U.S. money supply. During the pandemic, the Fed injected trillions of dollars into the economy, which encourages Americans to borrow and spend, and eventually drives up prices. It also cut interest rates to almost zero, which also increases spending by making it easier for businesses and individuals to borrow. The Fed intentionally stimulated the economy to speed the recovery after the pandemic, but it kept this stimulus going too long, leading to overspending and inflation.
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Congress is also partly to blame. They increased spending by roughly $5 trillion in 2021, much of which was unnecessary since it came when the economic recovery was already underway. The Fed supported these programs by purchasing more than half of the Treasury bonds issued to accommodate the increased spending. The Fed’s actions meant that most of the federal government’s pandemic spending won’t be paid for with regular taxes. Instead, Americans will pay for it through higher prices of the things they buy."
- rest of article at: Don’t Blame Vladimir Putin for Higher Prices | The National Interest
...
Congress is also partly to blame. They increased spending by roughly $5 trillion in 2021, much of which was unnecessary since it came when the economic recovery was already underway. The Fed supported these programs by purchasing more than half of the Treasury bonds issued to accommodate the increased spending. The Fed’s actions meant that most of the federal government’s pandemic spending won’t be paid for with regular taxes. Instead, Americans will pay for it through higher prices of the things they buy."
- rest of article at: Don’t Blame Vladimir Putin for Higher Prices | The National Interest
