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I typically try to keep politics out of my investing but there are rare times when congress and\or the current Presidential Admin. can have significant impacts on the economy. We are in one of those rare times.
Excessively extended unemployment benefits from the Covid situation
Cutting off our domestic oil production then begging OPEC to pump more oil
Excessive spending at a time when labor and supply chains are strained
Vaccination\Mask policies that impact consumer consumption and school attendance
Some of those policies may well be justified but some are not. The mask\vax stuff is probably a necessary evil over all but the spending and energy policies are driving inflation.
On top of that you have threats of tax hikes and future spending that normally would be "meh" in the eyes of Wall St. having an impact because of everything else going on.
The Biden Admin. did probably the smartest thing they have done since taking office today in working to get our west coast ports open 24/7. Since trucking is one of the weakest links in the chain right now they need to reverse their policy on energy to get the costs of trucking down. You already have a driver shortage, you cannot dump higher fuel prices on top of that.
We are very much entering a Carter-type era where we are seeing high inflation coupled with bad energy policy.
Unfortunately, the near term answer is to curb spending, curb demand and drive people from their couch to the 11 million+ jobs that are out there, despite them not all being $150k paying jobs you work from home.
The Fed has begun tapering which needed to happen years ago but was delayed due to Covid. That's the monetary side. The fiscal side needs to get their house in order.
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