As the economy recovers momentum following its pandemic-induced slowdown, attention has turned to speculation about the soaring inflation rate in the United States. However, expert opinions differ on whether the current high inflation is transitory or will have far longer-lasting effects.
Although the Federal Reserve has referred to the current 5% inflation as “transitory,” it has shied away from defining just how transitory the situation might be. Notes reveal that the Fed generally expects to see elevated inflation for the remainder of the year, with it moderating as we enter 2022. However not all Fed policymakers are as confident, with some anticipating that inflation may linger further into 2022.