Alan S Blinder writes in the Wall Street Journal that while the Fed has interest-rate work to do, food and energy prices will level off and supply chains will heal…(Wall Street Journal)
- Are we doomed to high inflation for years? No. One day, hopefully soon, food and energy prices will level off and the supply chain problems will dissipate. Depending on the details of timing, inflation will fall as quickly and dramatically as it rose. We’ve seen it happen before.
- Fed Chairman Jerome Powell and his colleagues would love to unclog supply chains, alleviate food shortages, and lower oil prices, but they can’t do any of those things. What they can do is raise short-term interest rates. That will help, but don’t expect miracles.