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In the lead-up to the coronavirus outbreak, inflation rates in the United States were relatively stable according to conventional metrics. However, recent macroeconomic developments aim to address the significant economic disruption caused by Covid-19. The Federal Reserve has implemented a policy of unlimited asset purchases alongside an aggressive monetary approach, while the federal government is poised to introduce a new $2 trillion stimulus package. Collectively, these measures represent one of the most extensive economic interventions ever made. But could this extraordinary initiative set the stage for escalated inflation in the future?


