Word on the street is that inflation is no longer “transitory” but likely to be “persistent” according to financial experts. The US Federal Reserve is aiming to wean the economy off its injections of cash by speeding up the “tapering” of bond buying. Fox News is reporting that interest rates are likely to rise a few times in the next couple of years. They recommend that people try to get personal credit under control as quickly as possible and locking in a low interest rate for mortgages where possible.
President Biden has conceded that his Build Back Better spending bill is not likely to pass until next year. Journalist Byron York argues that the true cost of the bill will be much higher than the asking price. The Senate voted last week to raise the debt ceiling, to prevent the US from defaulting on its borrowing. The child tax credits rolled out as part of the government’s pandemic relief spending has ended, but Democrats would like them to continue. Update: Joe Manchin has said he will not support the BBB bill.