As the Biden administration honeymoon continues, along with the massive spending, the Fed said recently that it not likely to raise interest rates in the near future.
The problem is, inflation has gone up every month so far this year.
Flashback to last year, one of Joe Biden's campaign promises was that "only those making over $400,000 would be taxed." Like many things, it sounds good, but then there's reality.
And the reality is, when you mix trillion dollar spending from the government, along with inflation, the end result is always the same. The middle class has to pick up the slack.
Economics professor Dr. Michael Busler told KTRH, "President Biden says he's only going to tax those who make over $400,000." "The problem is, there aren't enough of those people."
Busler believes that all of this spending is going to eventually lead to higher taxes for everybody. And even though we keep hearing all the right things out of Washington, there is a disconnect between the Fed and the real world.
"A tremendous disconnect" Busler says, and that is especially going to be true here in Texas. "The Biden administration has declared war on fossil fuels, and as a result of that, energy prices have gone up significantly and will only continue. I think we're looking at a very severe inflation problem."
A problem that is really going to hit middle class Americans. "The middle class gets clobbered by inflation" Busler adds. "They're the ones that have to pay for it."
As for the Fed's outlook that the inflation rate will come down? Busler says he disagrees. We shall see.