Federal Reserve Mussalem: When supply shocks occur one after another, the effectiveness of the policy logic of “ignoring short-term supply shocks” will decrease, increasing the risk of widespread inflation solidification. About half of current inflation is due to ongoing demand pressure.

Federal Reserve Mussalem: When supply shocks occur one after another, the effectiveness of the policy logic of “ignoring short-term supply shocks” will decrease, increasing the risk of widespread inflation solidification. About half of current inflation is due to ongoing demand pressure.