Some inflation may be transitory, but not all.
The Labor Department reported that consumer prices increased in April by the most since 2009. There is a record increase in used-car costs, while food and energy costs were also up. Figures for May are likely to show the same levels of increase, as debates begin in Congress and among economists about inflation.
The St. Louis Federal Reserve President James Bullard said that some of the inflation is transitory, but not all of it.
A pent-up post-pandemic demand could be part of the picture, according to Treasury Secretary Janet Yellen, who is cautioning the Federal Reserve to avoid experimenting with allowing inflation to run too far above the trend for far too long. She still supports the Fed preempting incipient inflation and not waiting until it shows up in hard data.
As the Lord Leads, Pray with Us…
- For U.S. economic advisors as they offer recommendations to the president and his administration.
- For wisdom for the members of the Federal Reserve as they deal with monetary policy, trying to look into an unforeseeable future.
- For discernment for Congress as additional spending is considered.
Sources: Money, Washington Examiner, CNBC
