With Omicron cases rising again across US as on date there is a sense of scare amongst citizens though death rate remains in control. However this more than 2 year pandemic has also brought in a new financial pandemic in the form of high inflation not seen in past many years. The worm burning a hole in the dollar is apt image in today’s scenario. Let us delve deeper on what is the government doing in this direction.
Consumer prices increased 7% last near — more than twice the Fed’s 2% goal — cheapening American wages, eating into household budgets, and becoming an increasing political liability for present government, whose popular standing has suffered as inflation has soared. Government’s three nominees to the Federal Reserve Board came out swinging against high inflation, saying rising prices pose a threat to economic growth and stopping that trend is a paramount task for the central bank. The Fed must “ensure that inflation declines to levels consistent with its goals.”
Fed policymakers have started raising interest rates, perhaps at a pace not seen in decades, as they scramble to cut short the upward price trend that threatens to undermine the recovery from the pandemic recession. The remarks from the nominees suggest they will join in those efforts once confirmed.
NPowersU Expert Opinion
One after another there are new issues coming up across the globe and US is no better after the Covid19 third wave and Russia-Ukraine war. After printing millions of bills and distributing it to tax payers in the name of economic package, it is but obvious that the inflation tiger in on a prowl on present government.
Just like an efficient ring master in a circus, whether the government will be able to tame the tiger – Only time will tell.
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