The Fed blames the supply chain for historic U.S. inflation

InflationMoney Matters
Written By Jennifer Joslyn

The Federal Reserve Bank of New York has compiled a data analysis that has placed much of the inflation blame squarely on the supply chain. The huge surge in demand for products compounded with supply chain constraints created by pandemic shutdowns, regulatory changes, and labor shortages can be correlated to approximately 60% of the inflation that has incurred from 2019 through 2021.

Officials at the Federal Reserve Bank are continuing to raise interest rates attempting to slow growth by lowering demand. It is expected to raise again within the coming month after evaluating one more employment report for the U.S. economy.

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Jennifer Joslyn
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