PERSISTENT RISK OF INFLATION
Booming consumer demand caused by the US economy reopening after the Covid-19 shutdown is expected to push up consumer prices even higher in the near future. Consumer Prices Index in the past 12 months ended in September 2021 remained at 5.4%, a 20 year high.
Many economists and analysts forecast even higher inflation rates caused by the non-stop asset purchases and money printing by the central bank. As quantitative easing ballooned the Fed’s balance sheet, commercial bank’s reserves have plunged sharply downward, making hyper-inflation a real possibility.