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The Fed Hits 3,000 Percent Inflation
by Thomas L. Hogan The American Institute for Economic Research
The US economy was pushed to extremes during the pandemic recession and subsequent recovery. The unemployment rate peaked at 14.7 percent, the highest in the post-World War II period. Inflation reached its highest rate in 40 years, prompting the Fed to raise short-term interest rates to their highest levels since 2007.
As of June, the economy hit another dubious milestone: Inflation has now reached 3,000 percent under the Federal Reserve.
Inflation under the Fed
The Federal Reserve Act was passed by Congress in December of 1913, and the regional Federal Reserve banks opened for business in November of 1914. Comparing the price level at the end of 1914 to the level today tells us how much total price inflation the US economy has experienced under the Fed.