Council of Economic Advisers chairwoman Cecilia Rouse stated on Fox News this weekend that she expects for America to see some “transitory inflation” as the country comes out of the covid pandemic.
Anchor Chris Wallace asked, “Can you guarantee that we won’t have a new round of overheating and serious inflation?”
Rouse responded, “These are top concerns, and we understand that coming out of a deep recession, there will be bumps as we go. We believe there will be supply chain disruptions. And that will trigger some transitory price increases.”
She went on, “We know there are some areas where employers are struggling to find workers because we are still in a pandemic. Some workers want to go back to work but do not have child care because schools are closed and the pandemic is still going on. When we see the other side of this, I completely expect that our labor market will be flourishing. We do expect some transitory increases in prices. The Feds anticipates that as well. We do not have evidence currently that those have become de-anchored so we don’t expect runaway inflation. With that said, we must be vigilant, and we are keeping watch. We anticipate, at most, transitory inflation.”
Author: Steven Sinclaire