Distressing inflation news keeps rolling in…
Multiple comments from senior federal officials indicate we are going to have inflation for a while.
Treasury Secretary Janet Yellen indicated inflation will continue into 2022.
She indicates the source of inflation is bottlenecks that have themselves generated inflation. Unstated in the article, and apparently unacknowledged by Secretary Yellen, this these bottlenecks are caused by the government shutting down the economy and in their staggering hubris thinking they can flip a switch and seamlessly open up the economy.
CNBC – 10/5/21 – Yellen sees inflation staying higher for the next several months.
Article also points out Fed chairman Powell called inflation news last week “frustrating.” I suppose so. When you think you can control the economy of the world with a few keystrokes from your laptop, such news would be quite frustrating.
Most unsettling tidbits in the article are the estimates from the Federal Open Market Committee that inflation measured by the PCE will be 3.7% in 2021. THey think it will be lower next year. I hope so.
St. Louis Fed President predicts 2.8% for the full year of 2022.