Surviving inflation could pose long-term threat to U.S. economy
SAN DIEGO (KUSI) – April saw the U.S. inflation levels rise to the highest in 13 years.
As pandemic restrictions lift largely across the U.S. and in some parts of the world, the American economy has begun grinding its dusty gears to start churning again.
Sully Sullivan, KOGO 600 Radio Host, joined KUSI’s Logan Byrnes to discuss the rise in prices of goods.
Sullivan defined inflation in layman’s terms, saying, “Inflation is the measure of the rate of rising prices,”
The radio personality went on further, describing the need for consumers to spend now since 2020 had many being more conservative with their money amid stay at home orders.
He called this a “supply shock,” to which manufacturers could not meet the demand given the ongoing high unemployment rates across the country.
However, the Federal Reserve has made it clear that prices rising at the reopening of the country from COVID-19 is are to be expected.
The Federal Reserve has also explicitly stated that they believe the inflation to be temporary.