The US Treasury will keep the control of inflation
Prices will remain high until the middle of next year when it is estimated that the conditions of the pandemic will improve and the workforce will return to work
“I do not think we are going to lose control of inflation,” said the Secretary of the Treasury of the United States, Janet Yellen, although she recognizes that the prices of products and services will continue to increase until the middle of next 2022.
Yellen confessed that the annual inflation rate will remain high due to the global supply problems that occurred as a result of the Covid-19 pandemic. However, she hopes that for the second half of next year sanitary conditions will improve and economic activity will rebound.
“As we move forward with the pandemic, I hope these bottlenecks will disapear. And Americans will return to the workforce as conditions improve.”
The prices of products and services in the United States have been experiencing a monthly increase and in early 2021 the Federal Reserve (Fed) of the United States indicated that these increases would be temporary, but now admits that they could last longer than planned.
Last September, the US registered an inflation rate in the order of 5.4 %, which represents quite high figures that had not been reported in more than a decade in the country.
Some of the factors that impact the rise in inflation are: “the shortage of labor, which continues to incite managers to the rise and disruptions in the global supply networks, which cause delays in the delivery of materials and products.”
Due to the expense it represents for consumers, equivalent to almost two thirds of economic activity, the current “government is providing generous distributions of money” since March 2020.
M. Rodríguez
Source: bancaynegocios
