January 27, 2022, 12:47pm
A record number of Americans predict higher inflation despite solid economic growth.
Despite surging inflation, the U.S. economy grew in the fourth quarter thanks to an increase in consumer spending, exports and private investments.
According to a recent Gallup poll, the American public is split on whether economic growth will increase or decrease in the years to come.
The effects of rising prices are still being felt by many Americans.
A record number of Americans think inflation will continue to rise in the future, according to the Gallup poll, with half of survey respondents predicting that prices will increase more.
According to Gallup, the current expectation from American households is the highest ever measured.
In a separate Gallup survey, roughly half of Americans said that rising prices have caused hardship for their family and hurt their finances.
Lower-income Americans have been hardest hit by inflation. According to Gallup, two thirds of Americans with an annual household income of less than $40,000 have experienced hardship. More than half of middle-income and 32% of upper-income families have experienced moderate hardship.
According to the survey, many respondents were generally optimistic about the stock market and unemployment.
The global economic recovery will be worse than expected due to the ongoing Pandemic, rapid inflation and supply chain constraints according to the International Monetary Fund. The U.S. GDP projections were lowered by the International Monetary Fund due to a number of issues.
When the economy went into a recession in 2020, it rebounded strongly in 2021. The economic growth was the highest since 1984 and blew past expectations. The economic growth was due to rising consumer spending, a jump in exports, and inventory investments by motor vehicle dealers. The S&P 500 briefly fell into correction territory this week, at one point 10% below its record high. The S&P 500 is on pace for its worst start to a year in history. The Federal Reserve tightens monetary policy in order to fight surging prices. The central bank said on Wednesday that it would begin raising interest rates in March. Fed Chairman Powell said in a press conference that there was room to raise interest rates before hurting the labor market.
The US economy grew at the fastest rate since 1984 last year.
The Federal Reserve Hikes Interest Rate to Fight Inflation.
The stock market is setting in panic as the S&P 500 briefly enters correction territory.
After the U.S. Inflation Surge and China Covid Disruptions, the International Monetary Fund thinks the economic recovery will be worse than expected.
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