The consumer price index rose 8.5% in March of the year, according to a report released by the Labor Department on Tuesday. Prices have not skyrocketed since Reagan came to power in December 1981.
Former Fed Chairman Ben Bernanke set an inflation target of 2% in 2012. Once the Federal Reserve began to follow the 2% level of inflation in 2012, that value was soon set as the target of numerous central banks around the world. All of this changed when the world collectively agreed to stop spinning for the coronavirus. As you can see, moderate inflation was low in the United States before 2020.
The 2% level remained for some time until they realized that inflation was not “transient” and that the central bank’s ability to control the artificially low rate situation had diminished. Guidelines and bans were lifted randomly. The US government began to spiral into debt by adopting new socialist spending programs. Unemployment levels are now recovering after three years, but Kovid’s losses cannot be ignored. While wages are rising, inflation has reached such a volatile level that everyone’s purchasing power has declined.
As of August 2020, the Federal Reserve has carefully changed its language:
“Notably, the Fed changed its language on inflation, replacing its 2 percent inflation target commitment, and instead said it will “[seek] to achieve inflation that averages 2 percent over time.”
In April 2021, inflation rose sharply (4.2%) to a level not seen since the Great Depression. Towards the end of Q4 2021, Chairman Powell acknowledged that inflation was not “transient” and downplayed the situation that would arise. We are now in the midst of a supply chain crisis, an energy crisis and a wage-price spiral. Every variable in this situation contributes to inflation over a government that does not take action to deal with any crisis.
White House Press Secretary Jane Sackie tried to control the damage a day before the report was released. “We expect the March CPI headline inflation to rise sharply due to Putin’s price hike,” Saki said. The numbers do not lie. Inflation rose sharply before Putin’s involvement in Ukraine. The mismanagement of the government and the central bank has created the current situation. Powell admits they should have moved a little faster, but Biden remains completely unaware of the problem and continues to make matters worse with his policies aimed at destroying America before it builds.[ing] Better back.