Abstract

Over the past 10 years, the US inflation rate has been perfectly controlled at around 2%, which is the ideal target range of the Federal Reserve. This situation has been maintained until March 2021. But it began to climb upward in April and reached a peak in February 2022. To explore the causes of American inflation and its impact on the real economy, this paper selects the food, real estate, energy, and automobile industries as the research targets. According to the data from March 2020 to the present, we find that although the price change trend of various assets is rising, the change range is inconsistent, which is related to the price elasticity of the product itself. In addition, combined with the current policies and relevant industry information, the paper analyzes the recovery schemes of various industries. Moreover, considering the Fed's interest rate hike, asset prices are expected to gradually fall in the future.

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