Economic stimulus checks, coupled with aggressive spending on the federal side, is buoying a struggling economy. The new administration is taking a “do more” stance, targeting specific parts of the economy in order to help build the country back after the miserable financial year that preceded this one. This new policy, it seems, is working.
Bouncing back from the rough financial year in 2020, 2021 seems poised to see the country rebounding into a great financial recovery. What is being dubbed as a “phoenix year” for the US might not be all sunshine and rainbows, though: many experts fear that the V-shaped economic recovery, aided by federal spending, could result in inflation rising out-of-control.
This fear is not echoed by Treasury officials, however. The conditions that need to present for inflation, the Treasury argues, aren’t in place: unemployment remains high and wages are at an all-time disparity between the highest and lowest earners.