Cantor: Rising household debt is bad omen for the economy

Cantor: Rising household debt is bad omen for the economy

Confounding the Federal Reserve’s efforts to return price stability to the current inflationary economy are excess liquidity in the money supply. That has increased by $6.23 trillion since February 2020, rising wages, and $7.3 trillion of government debt fueled spending since 2020, all of which have supercharged inflation. These factors have spurred consumer spending that has increased the Consumer Price Index and the Producer Price Index for the 12 months ended August 2022 respectively by 8.3% and 8.7%. To control …