Debunking Biden's 'Greedflation' Claim: The Fed Reveals True Drivers of Inflation

By Olivia Smith | May 15, 2024

Increasing prices

President Biden has consistently pointed to "corporate greed" as the main cause of the ongoing high inflation in the US economy.

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The government has alleged that companies are practicing "greedflation" and "shrinkflation," which involves increasing prices and decreasing product sizes to boost profits while harming consumers.

Federal Reserve Bank

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A recent study from the Federal Reserve Bank of San Francisco challenges the notion of "greedflation" and "shrinkflation," offering a more detailed and data-driven analysis of the factors influencing the current inflationary trends. The research indicates that while markups have increased in specific industries like motor vehicles, the overall markup rate has remained consistent with past economic recoveries.