ALEC in Epoch Times: Looming Price Hikes on Food Set to Hit Americans This Fall
If you want to address the inflation problem, you do it through the painful way of Federal Reserve action and higher interest rates and borrowing costs.
Higher inflation could force Fed action, leading to a ‘deeper recession’
In its effort to contain inflation, the Federal Reserve has begun what many expect to be a series of interest rate boosts, which are already taking a toll on stock and housing markets, with job losses likely to follow. While Americans grow weary of record high gas and grocery prices, however, another round of price increases is making its way through the food supply chain and is expected to reach consumers this fall.
“People don’t realize what’s fixing to hit them,” Texas farmer Lynn “Bugsy” Allen said. “They think it’s tough right now; you give it until October. Food prices are going to double.”
The 8.8 percent increase in food prices that Americans have already seen doesn’t take into account the dramatically higher costs that farmers are now experiencing. That’s because farmers pay upfront and only recoup their expenses at the point of sale, months later.
“If you want to address the inflation problem, you do it through the painful way of Federal Reserve action and higher interest rates and borrowing costs,” said Jonathan Williams, chief economist at the American Legislative Exchange Council. But, simultaneously, “you do it through the supply side, which reduces taxes and gets productivity back up across the United States.”