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Kansas City Fed: Recovering Industries Could Trigger Inflation

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Inflation may be rearing its ugly head in the US economy sooner than predicted. According to Business Insider, a recovery of the US's hardest-hit businesses could drive a faster-than-expected rebound for inflation. The US Federal Reserve aims to reach inflation of at least 2% before considering lifting its benchmark interest rate. However, price growth has trended below that level for years and fell further at the start of the pandemic. Kansas City Fed President Esther George said Tuesday that struggling industries could be placing outsized downward pressure on inflation. She added that a swift economic reopening could see businesses in travel and hospitality could rapidly bounce back--thereby driving inflation higher.

Added on the 12/01/2021 16:18:15 - Copyright : Wochit

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