Consumer demand is driving up inflation and experts say that limits what the government can do to intervene.
According to several economists and other financial experts, high consumer demand in the economy -- met with low supply -- is the main factor driving inflation. The war in Ukraine is also driving up prices, specifically on oil and food, they said.Experts also told ABC News that inflation is likely to be an issue in the coming months, one even saying they expect it to last for years.
Furman said inflation in the U.S. is worse than in other developed nations, in part, because of stimulus funds from the government. The Russian invasion of Ukraine is driving gas prices"through the roof" and creating concerns about crops coming out of Ukraine, which is a major global exporter of wheat, Baker said.
Baker agreed and said that"having a zero interest didn't make sense given the strength of the labor market." Such a commitment could be that if oil prices fall below a certain amount, the government would buy barrels to restock the strategic reserve, and therefore support oil prices, Baker said., which could drive down the price of imports; raise taxes; or cut spending to drive demand out of the economy.Inflation could remain an issue for the coming months, but experts disagree on how long it could last.
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