1. The Fed. They printed money and suppressed interest rates.
2 Congress. They raised minimum wages, allow oligopolies to flourish, poorly regulate our economy, create policies that drive our good jobs offshore and do a general poor job with debt and trade.
3. Covid-19. Caused death, global economic chaos, massive supply chain disruptions, mass unemployment, societal anger, and demographic shifts from urban to suburban living.
Who do you think is at fault?
My own view is that #3 Covid is playing the LARGEST role in the recently high inflation readings. The economy is not opening smoothly, global supply chains were glutted in 2020 and drained in early 2021. As inventory restocks, people come back to work, inflation should ease slightly. However, #2 Congress is a close second. They created work disincentives with their extra unemployment, rent and mortgage deferrals have improved consumer cash positions, and I think we all agree they get a F on the economy. As for #1, the Fed, if Quantitative Easing really was money printing and inflationary, Japan would be a high inflation nation. They’ve been trying for 25 years to defeat deflation and haven’t done so, yet.
Robert Lloyds, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
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