Market Events: What Types of Inflation are We experiencing?

What is the current inflation we face? Inflation is the overall rise in prices for goods and services. As the prices go up, the purchasing power of money decreases.

Faced with the pandemic, Congress approved $6 trillion in new spending under the US Rescue Program, Coronavirus Assistance, Relief and Economic Security Act (CARES), and other legislation. Fed also purchased $4 trillion in new assets to inject liquidity and capital into the market. Government bonds also increased significantly. These responses helped to…