Labor Shortages and Supply Chain Constraints Still Present

WASHINGTON, DC – Inflation projections are increasing as supply chain constraints and labor shortages continue to weigh on the economy, that’s according to the seven members of the Board of Governors of the Federal Reserve System (Fed).

Though the Federal Open Market Committee met last month, their notes are just being made public this week.

In their September 21 meeting, the Fed said they expected improvement in the labor market over the coming months, but some members argued that a complete return to pre-pandemic conditions was unlikely and employers will continue to face difficulty in filling open positions.

Of course, if the economic recovery remains broadly on track, the Fed suggested tapering of asset purchase could begin next month.

Still, the members agreed that the uncertainty with the economic outlook remains high thus complicating the interpretation of economic data.
(SOURCE: All Ag News)