Can The Inflation Crisis In The U.S. Be Stopped?

In 2021, inflation rose at a rate not seen in more than three decades. Congress gave the Federal Reserve a mandate to maintain stable prices. The bank, with its power to lend and set interest rates, is getting a test in the form of a snarled supply chain and a world continuing to recover from the pandemic. As a result, economists across the spectrum wonder if the Fed can control this bout of price spikes. Heading into 2022, the Federal Reserve is stuck in a game of chicken with the U.S. economy. Sectors such as energy and autos are hitting double-digit inflation rates, which are piling costs on for consumers. The central bank first said the eye-popping inflation figures reported in late 2021 are “transitory,” although it is now dropping that word from the messaging. Earlier in the year, the global supply chain was brought to its knees as traffic jams piled up along trade routes. Meanwhile, early retirements picked up and younger workers started to quit their jobs at the fastest pace on record.