The recent news of a significant jump in US consumer prices surprised many. As post-pandemic demand for goods has risen, the US is experiencing supply bottlenecks putting upward pressure on prices. Combined with Biden’s economic stimulus, this has caused growing concerns about the risk of inflation. Will the economy overheat? And how will the Federal Reserve respond?
Welcome to another week of Macro Bytes. In this episode, we welcome our guest host, Luke Bartholomew who is joined by James McCann, abrdn’s Deputy Chief Economist. The post-pandemic surge in consumer prices raises concerns over potential overheating the US economy and the risk of inflation.
Part 1 focuses on recent US inflation data and the bottlenecks in the goods and services sector.
Part 2 considers the outlook for inflation, the risks in 2022/23 and the Federal Reserve’s response.
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