The Fed Will Not Save Us From Inflation

I have lost all hope in the Fed, and who can blame me?

I haven’t lost hope in myself and how I can respond to rising inflation. I’m in a fortunate position and refuse to squander it.

However, I have lost hope in the Fed, the government, or any entity saving us from inflation. Inflation is a worldwide problem, and I haven’t followed every countries’ response.

We were first told pumping trillions of dollars in the money supply wouldn’t cause significant inflation. It was no big deal. Then, we heard inflation would be transitory. Again, no big deal.

Now we are in the middle of 7% inflation. This high increase comes after 6.8% inflation from the previous report. Our inflation statistic doesn’t reflect reality. Some goods inflate at faster paces than others.

Gas prices increased over 50% year-over-year. Used car and truck prices increased 37% year-over-year. The median rent increased by 17.8% in 2021. House prices saw similar gains.

Inflation has been downplayed. Now, we’re in the thick of it. The Fed says it will aggressively raise rates to keep inflation in check. Any action sounds reassuring, but this same group took a long time to act on inflation. I’m not relying on them to properly steer the ship.