Rising inflation in the US has drawn the attention of experts and economists across the world. Many have raised concerns in respect of overheating. However, some note that the economy is on the path to recovery and inflation is in line with the Federal Reserve’s targets.
Brad DeLong, professor of economics at the University of California, shared an article on concerns over inflation in the US. The US economy grew at an annualised rate of 4.3% in the fourth quarter and 6.4% in the first quarter of this year, indicating that it is on track to recovery. The economy is expected to return to pre-pandemic levels by the third of fourth quarter of the year.
Core inflation excluding food and energy prices also rose by 0.4 percentage points in line with the GDP growth over the past month. The core inflation rate over the past 12 months was 2.3%, which is in line with the US Federal Reserve’s target of 2%-2.5% and is expected to remain around the target.