From “Dow Jones & Company”:

New research suggests a misunderstanding of global supply chains might be why economists underestimated U.S. inflation. In 2021, many believed the burst in prices was temporary, caused by reopening economies and pandemic supply-chain issues. The Federal Reserve left rates near zero in November, stating that “inflation is elevated, largely reflecting factors that are expected to be transitory.” With inflation forecasting gone awry, it seems economists may have some egg on their faces. Copyright ©2024 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Read more: How Supply-Chain Snarls Made Everyone Wrong on Inflation