Economists and policy experts attribute the persisting consumer price growth despite the Federal Reserve's actions to various factors. These include delayed post-pandemic cost surges like home and auto insurance, structural issues such as the lack of affordable housing driving up rents, and the federal government's infusion of borrowed money into the economy.
The International Monetary Fund (I.M.F.) pointed out that the government's continuous injection of borrowed money, fueled by an elevated budget deficit from tax cuts and spending increases, was contributing to the demand for goods and services. This practice, while boosting economic performance, is leading to a borrowing pace that jeopardizes long-term fiscal sustainability.
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