An analysis of the economy by Morgan Stanley put the blame directly on the "excessive" fiscal stimulus spending by the Biden administration for the surge of inflation that is hurting so many Americans.
Michael Wilson led a team of analysts in the assessment released on Monday.
"In summary, the slack created by the covid recession is being absorbed much faster than usual. While some of this absorption is due to the supply disruptions created by the lockdowns, we think it was more so due to excessive fiscal stimulus provided during the pandemic, particularly the last $1.9T package at the end of March 2021 just as the economy was already emerging from the lockdowns," the analysis read.
"In our view, this was what turbocharged consumption and drove inflation to 40-year-highs," it continued.
"In other words, we created too much demand for the supply chains to handle. The fact that the supply chains had been impaired to some degree only exacerbated the shortages and inflation, especially for consumer goods," they concluded.
The stock market has been plummeting in the last month as inflation worries crush investors' hopes of companies' earnings justifying their valuations.
The analysis from Wilson predicted that the market will continue to plummet before hitting a floor.
Republican pollster Kristen Soltis Anderson responded to the assessment by pointing to a poll from March 2021 that showed voters were very concerned about the massive spending leading to inflation.
"Voters at the time were more worried about this possibility than many of our elected officials were," tweeted Anderson.
More recently, voters have indicated in polling that they blame Biden's spending policies for inflation more than the pandemic, the invasion of Ukraine, or supposed corporate greed. Biden has responded to the crisis by claiming that fighting inflation is his first priority.
Here's more about Biden's inflation crisis:
Inflation rises to near 40-year highwww.youtube.com