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Thoughts from the Generations Wealth Team

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Surging Inflation: Temporary or Durable?

The sudden revival of the economy has created a strong demand for goods and services coupled with shortages of labor, raw materials, and finished products. These conditions have pushed prices up but are expected to moderate after shortages and supply-chain issues are resolved. However, other forces may be pushing prices up in durable manner: the increase in the money supply due to $5 trillion in fiscal stimulus along with the Federal Reserve’s policy of keeping interest rates low.

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