by confoundedinterest17
Right now’s Producer Costs Index Remaining Demand printed at a whopping 7.3% YoY.
On the similar time, Federal Reserve Chairman Jerome Powell Says Achieving ‘Substantial Additional Progress’ a Methods Off
Here’s a chart of PPI Remaining Demand YoY in opposition to common hourly earnings YoY. Common hourly earnings have returned to pre-Covid ranges (yellow line).
Or it’s Powell desires to be reappointed as Fed Chair and is bending over backwards to appease the free-spending Biden Administration?
Powell: “Sturdy demand in sectors the place manufacturing bottlenecks or different provide constraints have restricted manufacturing has led to particularly speedy worth will increase for some items and companies, which ought to partially reverse as the consequences of the bottlenecks unwind,” Powell stated. “Costs for companies that have been onerous hit by the pandemic have additionally jumped in latest months as demand for these companies has surged with the reopening of the financial system.”
However how will Fed financial coverage remedy bottlenecks, different that drive costs larger?
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