- Pandemic in many ways is the culprit behind high inflation
- We have policy-supported demand and fragile supply chains; that's a recipe for inflation
- Going forward, I expect some of this to roll off, helping to get supply and demand back in balance
- Supply chains will hopefully repair as well
- I see well-anchored inflation expectations
- It's time to get back to neutral and looking at if we need to go over neutral
- Inflation is too high
The 2% inflation comment is almost simple math at this problem. We're one-quarter of the way through the year and prices are already up more than 2%. Even if prices didn't go up a cent by year-end from here, 2022 inflation would already be +2%.