Fed slows stimulus to lower inflation
The federal government had to deal with high prices, a booming housing market and record consumer spending.
The consumer price index (CPI) is reported to have fallen to 8.3% in April, still a few points higher than what experts had predicted.
Even though inflation was slightly below March’s record high when the CPI hit 8.5%, it’s still a problem for Americans across the country.
Additionally, the Fed’s slow withdrawal of stimulus dollars had no impact on consumer spending, with retail sales in April rising 0.9% from March, the Fed said.
The pullback actually raised the cost of capital, pushing the yield on the 10-year Treasury note up to around double the rate by early 2022, according to CFO Dive.