(USNewsMag.com) – Inflation is at a 30-year high under President Joe Biden. Americans are paying more for nearly everything. However, on perhaps a more bright side, the Federal Reserve is expected to take action in 2022 to tackle the prolonged issue.
We're paying more for everything. Inflation just increased at a 30-year high. So it's no surprise that the tremendous cost pressure from expensive overseas shipping, lack of labor, heightened raw material and so much more will force price increases.https://t.co/SXZWnKhDAD
— C.J. Mittica (@CJ_ASIMedia) December 9, 2021
During the beginning of the COVID-19 pandemic, the Fed reduced interest rates to nearly 0%. The hope was the lowered rates would encourage more lending and boost the economy. While it did help economic growth, it also caused rents and the prices of homes to soar. The Fed is expected to raise interest rates in the new year to slow the market down a bit and balance out things. The Federal bank still thinks inflation will increase 2.6% this year.
The Fed expects Gross Domestic Product (GDP) growth to move at a faster rate than what it predicted in September. The GDP is the total market value of all the goods and services produced within a country. It’s often an indicator of how well the economy is doing. When it’s growing, the nation is doing well. But, when it shrinks, it indicates the economy is on the wrong track. In the fall, the bank predicted the GDP would grow 3.8%, but then increased it to 4.0%.
The predictions for the new year are not strong and could be better. The country is largely bouncing back from COVID-19, but it’s been a painful, expensive process.
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