Fed Governor Michelle Bowman said in a speech, “as the recovery in the labor market and spending on goods and services continues to gain momentum, we are seeing upward pressures on consumer prices.”
“This rise has reflected, in part, the fact that inflation numbers at the onset of the pandemic were very low,” she added. “But there is more to the recent rise in inflation than just these measurement issues.”
“The impressive upswing in economic activity has played an important role as it has led to a number of supply chain bottlenecks and put upward pressure on prices for many goods,” she said. “These upward price pressures may ease as the bottlenecks are worked out, but it could take some time, and I will continue to monitor the situation closely and will adjust my outlook as needed.”
