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Many rural bank CEOs surveyed see inflation sticking around

More than half of rural bank CEOs in 10 states, in the latest Rural Mainstreet Index, expect inflation pressure to continue.

Ernie Goss, with Nebraska’s Creighton University, conducts the survey each month and says the bankers indicate the rural economy is growing at a very strong pace.

“Agricultural commodity prices, of course, are bolstering agricultural income and that’s spilling over into the broader community where that’s the local car dealership or the local agricultural equipment dealer.”

If President Biden gets his way, Goss says inflation will be much more significant.

“As an economist, I see the current inflationary pressures – some of it will continue. A lot will depend on what happens with the negotiations in Congress with President Biden’s infrastructure plan and his proposed six-Trillion dollar budget for next year.”

But Goss tells Brownfield he believes Republicans will hold those plans in check. Goss expects inflation, which is now 6%, will end up at around 3% moving forward. More than 75% of the bankers say the Federal Reserve should begin raising interest rates before the end of this year.

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