The recent report of New York Federal Reserve Survey of Consumer Expectations has shown an increase in American Inflation, projected lower purchasing, consumer debt, and fears of a housing bubble. The result marks the highest since 2013.
This inflation resulted from the impact of lockdown by the U.S. government for over a year due to Covid-19 plus the Federal Reserve M1 supply increase by 30%. This has been a major concern of the Americans recently as inflation continues on the rise and supermarkets are buy excessively to hedge against inflation and possible unforeseen higher supply chain.
Per the report, commodities prices have jumped by significant percentages. However, the Fed Survey result forecast a 4.8% inflation rate in the next 12 months, the highest since 2013. American financial situation continues to get worse.
According to the Fed report, “Perceptions about households’ current financial situations compared to a year ago deteriorated, with more respondents reporting to be worse off compared to a year ago.” However, some Americans expressed optimism.
Additionally, the rate of Credit loans has jumped by 10%. The Survey of Consumer Expectations report notes, “The increase was broad-based across loan types and credit score groups, although it was largest for a mortgage refinance applications.” Sadly, the overall rejection rate for credit has also jumped to the highest recorded rate since October 2018.
Peter Schiff while commenting on the release of stimulus fund reveals that the Federal Reserve debt rate has risen to $4.28 trillion stem from student loans, credit cards, and auto loans, excluding mortgages.
Schiff gave reasons why the U.S. Central Bank will not be raising interest rates, “The reason that they are not going to fight inflation in the future is the same reason they’re not fighting it now — because they can’t do it without collapsing the economy.”
