Bidenflation: Fed Study Blames Huge Spending Bills for High U.S. InflationJohn Carney 29 Mar 2022
Who is to blame for high inflation?
A paper from the San Francisco Fed pins much of the blame on the Biden administration’s big spending.
“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 Oscar Jordana, Celeste Liu, Fernanda Nechio, and Fabian Rivera-Reyes wote in the weekly Economic Letter published by the Federal Reserve Bank of San Francisco on Monday.
The San Fran Fed economists note that while inflation is high in much of the world, U.S. consumer prices have surged more than peers. And the tightness of the U.S. labor market, spurred by huge deficit spending bills that pumped up U.S. household incomes, likely explain the difference.
The core Consumer Price Index—which excludes energy and food prices—started 2021 rising at a pace below two percent a year. By the end of the year, core CPI was running above five percent on an annual basis. The pace of inflation in the rest of the developed world was much slower.
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https://www.breitbart.com/economy/2022/03/29/san-fran-fed-bidenflation/
