The Fed Office Predicts Inflation Will Get Worse In The US

Fed says inflation is getting worse

JAKARTA – The US is predicted to experience inflation in the coming months. One of the top officials from the Federal Reserve said that inflation will get worse in the country of Uncle Sam, as reported by Russia Today.

"The math suggests we may see somewhat higher readings over the next few months before the odds start to diminish," Minneapolis Federal Reserve Chairman Neel Kashkari told Face the Nation on Sunday.

Kashkari believes that the soaring demand for goods is the cause of the current worsening of inflation and supply chains, coupled with the Covid-19 pandemic that has hit the world. However, Fed officials argue that both things are "temporary".

Kashkari continued that the "surging demand" was a result of "Congress has given a lot of money to families and businesses to get through the pandemic." Data from the US Department of Labor reveals the current inflation rate is the highest in 30 years.

He also stated that the “pain” that US consumers are experiencing is very real. The government should therefore not “set long-term monetary policy and adjust too often based on temporary factors, even if those temporary factors take a little longer than we expect.”

In addition, he also predicts in the next six to nine months, "we will get more data on the demand side and supply side to get a better reading of where the economy is going."

On the other hand, President Joe Biden's administration is facing intense pressure from inflation as Americans realize gas and food prices are starting to soar. The US is also heavily constrained by supply chains which causes slow movement of goods.

Joe Biden mentioned that Americans may face a "too high" price spike, but he also mentioned that the US is on a "historic economic recovery." If inflation in the US worsens, other possibilities will spread to other countries.