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last updated 6 April 2026
Inflation was high during the COVID pandemic period due to a combination of supply shocks, strong consumer demand, labor market tightness, and global factors.
Biden's American Rescue Plan Act of 2021, which paid taxpayers with incomes of $75,000 or less., to help those who lost their jobs because of COVID and provided temporary expansions of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), has been estimated to have lifted more than 2 million children above the poverty line.
However, it increased consumer spending and with the other problems mentioned above it contributed to inflation.
