Broker Check
Change

Change

June 01, 2021
Share |

As our nation continues to recover from the effects of COVID-19, one economic trend has been capturing news attention as of late. Consumer prices are rising amidst economic recovery. In fact, the Consumer Price Index (CPI) rose 0.8% in April 2021, jumping by a greater-than-expected 4.2% year-over-year.1

With upward trending prices, an important question arises - Is the Federal Reserve ahead or behind in its monetary policy regarding inflation? Federal Reserve Chair Jerome Powell has said it could be a mistake to see inflation as a guest long overstaying its welcome.

“One-time increases in prices are likely to only have transitory effects on inflation,” Powell said. He added, “It will take some time before we see substantial further progress.”2

How to Know When Inflation Is Here to Stay
Keep an eye on skills shortages, consumers’ wallets and the market’s expectations.
Robust Spending Likely Propelling Economy to Stronger Growth
Americans likely extended a spending binge in April as they caught up on activities they held off on during the pandemic.
Ohio woman claims state's first $1M vaccine jackpot; 10 states reach Biden's vaccination goal: Live COVID-19 updates
Ten states, mostly in the Northeast, have reached a goal to vaccinate at least 70% of adults with at least one dose by July...

1. CNBC, May 12, 2021
2. CNBC.com, April 28, 2021