Is the Fed looking at this and saying, huh we might need to try something new to tame inflation other than our standard raising interest rates? I think it would be really really hard for the Fed with its current mandate to take something like corporate profits into account. The rich have gotten richer and the poor have gotten poor they've blown through their savings while wealthier people have tended to see their savings just go up. And so I think those are the things that are really driving this dynamic.
The traditional explanation of inflation is simple: too much money chasing too few goods. But some experts are now wondering if companies’ aggressive pursuit of profit is driving up inflation as well.
This episode was produced by Miles Bryan, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Paul Robert Mounsey, and hosted by Noel King.
Transcript at vox.com/todayexplained
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