The costs of goods and services rose sharply again in August, leaving the U.S. inflation rate at a 30-year high, the Department of Commerce reported, causing the Federal Reserve chairman and at least one White House economic adviser to change their tune on just how temporary the Biden administration’s inflation increase may be.
What are the details?
Jared Bernstein, who is currently a member of the Council of Economic Advisers for the Biden administration, predicted to Fox Business that inflation would end around 4% this year before settling back down to 2.3% in 2022.
“The catch,” Fox Business reported, is that “he cannot say when that will happen and believes we might see elevated inflation into the middle of next year.”
The adviser’s remarks matched those issued recently by Federal Reserve Chairman Jerome Powell, who during a panel discussion acknowledged that rising inflation will likely last into next year.
The central bank chief called it “frustrating to see the bottlenecks and supply chain problems not getting better” but actually “getting a little bit worse,” and added, “We see that continuing into next year probably and holding up inflation longer than we had thought.”