OPINION: As a finance and economics expert, I have studied inflation, what causes it and what can bring it down. That’s why I doubt a Republican Congress would have much, if any, effect on inflation.
Soaring inflation is the top issue for a lot of voters heading into the midterms, with most saying Republicans would do a better job of handling the problem.
The first is by way of an increase in demand for products and services. For example, at the beginning of the pandemic, demand for webcams soared, as lots of employees were required to work remotely. As a result, the prices of webcams increased significantly. The Fed can fight only half the battle An economy’s central bank—not Congress or the president—is typically the first line of defense when it comes to battling inflation. Central banks set monetary policy, and their primary way of combating inflation is by raising interest rates.
These issues have affected the prices of everything from bicycles to bathroom tissue. Higher interest rates will not affect the supply of and thus the prices for bikes, toilet paper or any other goods feeling supply-chain strains.
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