American inflation is reaching record levels.
The Department of Labor revealed on Thursday that year-over-year inflation hit 5% in May — “the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.”
In addition to hikes in food and energy costs, inflation in the categories of used vehicles, transportation, and commodities respectively rose by 29.7%, 11.2%, and 6.5% in the past twelve months. Indeed, as the United States emerges from COVID-19 and the lockdown-induced recession, price levels are climbing far faster than usual in both April and May.
While it is typical for price levels to rise after a pronounced recession, the Federal Reserve is not backing down from its commitment to an aggressive quantitative easing policy through 2023. In other words, the central bank of the United States has promised to stimulate the economy by increasing the money supply — primarily through purchasing $120 billion in government bonds every month — for the foreseeable future.
Likewise, the Biden administration