June 22, 2021

MARK-TO-MARKET: Inflation: What’s driving prices higher? | Business & Economy

Inflation is the year-over-year increase in prices for consumer goods and services. Understandably, inflation often elicits a negative response. Let’s be honest, do any of you shout, “Yes! Prices are rising!” while high-fiving fellow shoppers at your local retail checkout line? But from an economic standpoint, inflation isn’t an inherently bad thing. Rising prices typically represent a vibrant consumer demand for goods and services that ultimately drives our economy forward.

However, the key word is moderation. Historically, the U.S. Federal Reserve’s target rate of inflation is 2%. The Fed deems a 2% inflation rate as the ideal balance between economic growth and rising prices. The Fed serves as the decision-making body for U.S. monetary policy. By adjusting its monetary policy, it seeks to manipulate spending, investment, employment and inflation to promote economic…

Read full article here: qctimes.com