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Fed Study Points Finger at Fiscal Boost for High U.S. Inflation

  • San Francisco Fed researchers say it could have added 300 bps
  • U.S. may have seen outright deflation without aid, study says
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Federal Reserve Leaders on Policy, Rate Hikes, Soft Landing

Who’s to blame for high U.S. inflation? The folks who create fiscal policy -- at least says those behind monetary policy.

U.S. consumer prices have surged more than in other developed economies and one reason may be the massive government support provided to Americans during the pandemic, according to researchers at the Federal Reserve Bank of San Francisco.