OPINION: The Debt, The Fed, Inflation, and You
Inflation hit a 13-year high in June at 5.4%, a result of trillions added to the national debt and the Federal Reserve (Fed) printing money at the fastest rate in history. New dollars printed by the Fed in 2020 made up nearly 20% of all money in the US economy. US debt at the end of 2020 was 129% of the National GDP.
What does this mean for you? As inflation outpaces income for the average household, the buying power that your dollar has is greatly decreased and as the price of goods increases it will hit the middle- and low-income classes the hardest. Lower- and middle-class Americans will see the price of goods rise at an inflated rate while their paychecks will fail to keep up.
US debt at the end of 2020 was 129% of the National GDP.
JACOB BRADLEY, CHAIR