OMAHA, NE (KELO.com) — The debt ceiling is resolved for a couple of years, but the nation’s debt is still a problem. Economists say runaway federal spending is putting the pinch on the economy. Heider College of Business Dean Tony Hendrickson of Creighton University says the Federal Reserve’s hopes of a “soft landing” in the battle against inflation may be a pipe dream.
The Federal Reserve’s main weapon to tame inflation is higher interest rates. Reserve Board members have been raising rates for over a year, and now some are wondering if they fighting a losing battle. Dean Hendrickson says runaway federal spending is making it tough going.
Hendrickson says gas prices could move sharply higher later this year. OPEC nations say they’re cutting supply to drive prices higher.
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