US fiscal stimulus boosted vehicle price pressures – Fed research

Vehicle sales driven by consumer and small business stimulus, say Fed researchers

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Stimulus checks to consumers and loans to small businesses increased vehicle sales and prices, researchers with the Federal Reserve Board find. 

The results add evidence on how generous fiscal stimulus in the US made have added to the subsequent inflationary surge.

Receiving a stimulus check increased the probability of purchasing new vehicles, say the authors. “Strong sales were associated with an increase in vehicle price inflation of 1.3 percentage points (20%), contributing to the rapid pickup

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