Something has to give. The Fed can’t simultaneously fight inflation and prop up Uncle Sam’s spending spree. Either the government will have to cut spending or the Fed will eventually have to go back to creating money out of thin air in order to monetize the debt.
Inflation likely remained stubbornly high in April as price pressures continue to squeeze household budgets despite Federal Reserve interest rate hikes.
A New York Federal Reserve survey released Monday shows consumers are bracing for inflation to remain above the central bank's 2% target in the long term.