Fed Alone Can't Fix US Inflation as Debt Payments Surge

The recent 0.4% increase in the Consumer Price Index (CPI) and 3.4% rise over the last 12 months is a concern for the US economy, with voters generally disliking inflation.

Oil and gas prices have contributed to this surge, but it's essential to address the bigger picture: overall prices continue to rise faster than they should, far surpassing the Fed's 2% annual target.

A National Bureau of Economic Research paper found that nearly six years after the 'Great Inflation' began, American workers have been struggling with real wage reductions, despite customary cost-of-living raises. This issue goes beyond the Federal Reserve's efforts to combat inflation.

The Trump administration and Congress should prioritize beating inflation, but instead, they shift the blame entirely onto the Fed. However, without fiscal austerity, increasing interest rates can fuel a vicious cycle of debt growth and unaccounted-for money.