WASHINGTON – Recession is imminent. That’s the clear consensus among U.S. economists. Although the Federal Reserve’s work to bring down inflation has led to a slight drop, prices are expected to keep climbing. There’s a growing belief the Fed missed the mark, over-reacting to put the country right into a recession.
One key factor in all of this is the money supply. In 2020, fear over a pandemic shutdown prompted the Federal Reserve to begin pumping more than $6 trillion into the U.S. economy to combat unemployment and promote economic growth.
Congress injected close to another $6 trillion in stimulus-related spending. The result was an over-stimulated economy.
Johns Hopkins Economics Professor Steve Hanke, a former advisor to President Ronald Reagan, says the reason for today’s high inflation is that the money supply grew so quickly during the COVID economy of 2020 and…