The federal government has pumped $850 billion of direct stimulus payments to citizens in response to the pandemic (Peter G. Peterson Foundation). In combination with the COVID health mobility restrictions, this cash infusion resulted in changes in retail spending patterns. Since the pandemic started, there has been a surge in retail goods spending as consumers had more money to spend and service spending was severely curtailed.
Euphoric State
In ’21, we see an economic recovery unlike never before. Of course, I am referring to 1921, after both WWI and the Spanish flu had ended. But the country’s mood now, as vaccines work to end this pandemic, is beginning to rise toward a euphoric state.
You’ve probably seen the headlines about some economists becoming increasingly concerned about inflation. So, should we be concerned? (Note: please keep reading. This is not one of those in-depth analysis involving T-bills and yield-curves, but more of a big picture, horse-sense type of view.)
You ask. FTR Experts answer.
