Clarity In The Current Uncertain Environment

Clarity In The Current Uncertain Environment

Clarity In The Current Uncertain Environment

Price increases mean inflation, but when those price increases are brought about by highly unique, even one-off events, should traditional responses to price increases be used? The U.S. Federal Reserve thought so, and it raised interest rates 11 times, even as price increases continued. Now that consumers are getting squeezed because the pile of money they aggregated during the pandemic has run out, interest rates and prices are starting to tumble.  What has been happening in the U.S. economy in the recent past and what can be expected going forward?

A look at the unusual economic forces that created price increases and an explaination as to why prices and interest rates will decline faster than anticipated.  

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