Philip Jefferson, Speech: Technology’s Impact on the Post-Pandemic Economy

“We have already seen some indications from survey data, information from transportation hubs, and producer prices that supply bottlenecks have, at long last, begun to resolve … Nonetheless, inflation remains elevated, and this is the problem that concerns me most. Inflation creates economic burdens for households and businesses, and everyone feels its effects. It can also change people’s expectations about how long-lasting price rises will be. Those inflation expectations can become entrenched and, in doing so, increase the likelihood that high inflation will persist. While oil and gasoline prices have come down in recent months, I am concerned that fluctuations in prices of the goods to which people pay the most attention, like food and housing, will affect expectations of future inflation. Thankfully, longer-term inflation expectations appear to remain well anchored, consistent with our 2 percent target. I will be watching those expectations closely.”