IkePoR said:
So lets see if I got this right: it's covid and only covid then? And nothing to do with mortgage interest rates, mortgage payments and rent being higher, the Russia-Ukraine war, or profligacy in the treasury? |
Like they said, high inflation isn’t something that happens all of a sudden and is usually from a variety of factors coming together at once, one of those factors was Covid.
Covid saw large parts of the economy shut down in 2020 and as things started to open back up in 2021 we saw supply chain issues due to increased demand, labor shortages and lingering Covid restrictions. This was exacerbated by the war in Ukraine in 2022 where sanctions on Russia saw oil prices skyrocket.
A combination of Fed interest rate hikes and supply chains stabilizing have seen inflation gradually come down from its peak of 9.1% in June 2022 to 2.5% in August 2024 which is close to the ~2% target of the Fed and we will likely see interest rates start coming down.
When the herd loses its way, the shepard must kill the bull that leads them astray.
