Government spending to blame for inflation spike, San Francisco Fed study says

Ask Democrats and Republicans what is to blame for high U.S. inflation, and they would point their fingers at extremely different culprits.

While the White House has identified supply-chain bottlenecks and other pandemic-induced disruptions in the economy for the recent price spike, GOP lawmakers have pinned it on the president's massive spending agenda.

But now researchers at the Federal Reserve Bank of San Francisco are weighing in on the topic – and they say that massive government spending during the coronavirus pandemic has caused U.S. inflation to surge more than in other developed economies. 

"Fiscal support measures...