Inflation & Prices
Greedy US Firms Not to Blame for Inflation, Fed Study Suggests
- Fiscal and monetary stimulus lifted margins, study says
- Democratic progressives have attacked firms for ‘greedflation’
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Don’t blame greedy corporations for the surge in US inflation over the last few years.
That’s the message from a new study by Federal Reserve economist Berardino Palazzo. Once the huge fiscal and monetary support provided to the economy is accounted for, “corporate profits margins were not abnormally high in the aftermath of the Covid-19 pandemic,” Palazzo wrote in a Sept. 8 note.