Journal Article

President's Message: How Long Will Higher Inflation Last?

Abstract: For the first time in more than a generation, we are grappling with high, broad-based, and persistent inflation. The pandemic and events like Russia's invasion of Ukraine unleashed shocks that affected supply chains and labor markets, pushing prices and wages up. In response to the pandemic, $6 trillion of fiscal stimulus was enacted, fueling demand and limiting labor supply. And some have argued the Fed's pandemic response was too expansionary for too long — that we were caught off guard after the prior decade of stubbornly low inflation.

Keywords: Inflation; Cost Pressure; Pricing Power; wage pressure;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2022

Volume: 22

Issue: 4Q

Pages: 1