The inflation meter for January 2022 was the highest its been since the early 1980s, reaching 7.1%. February posted an inflation rating of 7.9% which is a significant jump considering we were already at excruciatingly high levels. The Russia-Ukraine war isn’t going to make things any easier, and while inflation was otherwise expected to decline after February 2022, the sanctions being placed on Russia are causing prices of commodities like oil and nickel to spike dramatically. So much so that the value of the American Nickel is actually worth about 10 cents in raw materials despite the coin being worth only 5 cents.
The biggest issue facing the US inflation is the excess money in the financial system caused from the monetary stimulus. The Federal Reserve printed money in a process known as Quantitative Easing, and reduced its key interest rate to 0%, which caused asset prices to rise and inflation to skyrocket.
Inflation became a key concern for lawmakers mid-2021 and no significant policy changes have been made since then. The solution to inflation is to stop printing money and to raise interest rates, but that will inevitably cause the stock market to fall even though companies are no less valuable.