Mounting problems with inflation, the supply chain, and energy shortages are not likely to resolve themselves quickly.
Authorities in Washington—President Joe Biden, Federal Reserve Chairman Jerome Powell, and Treasury Secretary Janet Yellen—have told the public not to worry over the recent inflation, which they insist is “transitory.” They link the problem to supply-chain constraints that they suggest will soon lift. Supply problems have certainly contributed to inflation, but early relief seems unlikely. Even Transportation Secretary Pete Buttigieg expects problems until mid-2022 at the earliest. That will put a damper on holiday gift-giving and makes the word “transitory” sound misleading.
