by John McPhaul, The Chicago Times
November 14, 2021
MINNEAPOLIS — According to Minneapolis Federal Reserve Chairman Neel Kashkari, inflation is only going to get worse for Americans over the next few months.
Current inflation and supply chain issues are the result of a “surge in demand for goods,” as well as the Covid-19 pandemic, both of which the Federal Reserve official refers to as “temporary.”
According to Kashkari, the increase in demand is due in part to “Congress giving a lot of money to families and businesses to get through the pandemic.”
According to US Labor Department data, inflation is currently at a 30-year high.
While Kashkari acknowledges that the “pain” felt by US consumers is real, he believes the government should not “set long-term monetary policy and-and adjust too much based on temporary factors, even if those temporary factors take a little bit longer than we expect.”
President Joe Biden and his administration have come under fire for their handling of inflation, as Americans have seen the cost of gas and food skyrocket, while also dealing with massive supply chain issues that have slowed the movement of goods.