Reply to Family of 3 spends $1000 on groceries per month

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[quote=Anonymous]^YES, but the conclusion of every non-partisan economic group us that without the stimulus, we likely would have been really f87c4d.

"The United States is experiencing higher rates of inflation than other advanced economies. In this Economic Letter we argue that, among other reasons explored by the literature, the sizable fiscal support measures aimed at counteracting the economic collapse due to the COVID-19 pandemic could explain about 3 percentage points of the recent rise in inflation. However, without these spending measures, the economy might have tipped into outright deflation and slower economic growth, the consequences of which would have been harder to manage"

"Yet today’s situation looks very different. Unemployment is relatively low, and households overall are in good shape financially. The Conference Board, a business research group, found that consumers’ inflation expectations last month were the highest they’d been since July 2008. But consumers didn’t seem all that worried: The board’s confidence index rose anyway, on optimism about the job market.

“For the time being, at least, they feel that the benefits are outweighing the negatives,” said Lynn Franco, the Conference Board’s senior director of economic indicators."
Further, consumer demand will continue to drive inflation, no matter what the Fed does.

So pick your poison. And at any rate, the Fed is on it to the best they can be,

"Powell has announced that the Fed will start reducing the monthly bond purchases it began last year as an emergency measure to try to boost the economy. In September, Fed officials also forecast that they would raise the Fed’s benchmark interest rate from its record low near zero by the end of 2022 — much earlier than they had predicted a few months earlier.

But sharply higher inflation, should it persist, might compel the Fed to accelerate that timetable; investors expect at least two Fed rate hikes next year."
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