Nebraska experts say divided Congress could mean lower inflation rates
LINCOLN, Neb. (KLKN) – Nebraska experts believe that a divided Congress might actually benefit the economy and reduce inflation.
“What we sometimes see is they both block each other’s spending initiatives and that leads to overall spending growth slowing down,” said Eric Thompson, director of the University of Nebraska-Lincoln’s Bureau of Business Research.
The United States Federal Reserve has also taken steps toward reducing inflation by raising interest rates.
“Raising interest rates makes it slows down the economy, believe it or not, and that’s what the Feds are trying to do. In other words, they call it a soft landing,” said Ernie Goss, an economics professor at Creighton.
For consumers, there won’t be any direct impact on the price of goods.
“Unfortunately, we’ll continue to face the higher prices we’ve seen,” Thompson said. “But hopefully the pace of inflation will slow and start to normalize over time.”
One trend that’s here to stay is the high price of fuel. Goss said this is largely due to President Joe Biden’s aggressive climate action plan.
“That’s gonna continue, there’s little doubt there,” Goss said. “President Biden killed the Keystone XL pipeline, which was coming right through Nebraska, so it had a big impact on Nebraska in that respect, so those sorts of actions are likely to continue.”