Dollar in your pocket is a problem for the Fed

Dollar in your pocket is a problem for the Fed During the pandemic, the caring US government put more than $5 trillion in the pockets of its citizens in the form of incentive payments and unemployment benefits. Now, this mass of cash is making life difficult for the Fed and pushing interest rates even higher.In the 4th quarter of 2019 (before the start of the COVID hysteria), the amount of cash and money in the demand accounts of American households was estimated by analysts at about $1 trillion  this is a completely balanced amount of currency in the pockets of an ordinary consumer.In the second quarter of this year, this figure rose to $4.7 trillion and Americans continue to accumulate cash. Over the past 70 years, nothing like this has happened, although statistics show a similar trend in this indicator during the Second World War.Situation is quite logical: only the US federal government has issued $1.5 trillion to citizens during 2020-2021 as unemployment benefits, and the costs of other loyalty programs, in general, can only be estimated indirectly.Non-working consumers simply spent less money, while those who kept their jobs and/or exceeded income limits set by the stimulus received additional money from rising stock and real estate prices. And interest rates were so low that it made no sense for Americans to withdraw money from their checking accounts or take it out of the piggy bank.It is not entirely clear why cash stocks continue to grow this year, and how now to force the consumer to return this mass of currency to an active economy. Private savings mitigate the downside of rising prices, but the same unaccounted for and uncontrolled money makes it harder for the Fed to analyze current performance in the war on inflation.So far, the regulator has not invented an effective cure to combat the economic consequences of such government largesse. So let's raise the stakes.Profits to yall!