WASHINGTON (Reuters) – The US economy is in a “transition period” as it reopens after the pandemic, so inflation is likely to be volatile and workers will carefully consider their options, the Federal Reserve chairman said. from Atlanta, Raphael Bostic.
Both the demand and supply of workers, goods and services is unstable now, Bostic said, and “we are going to see a lot of volatility in prices and their fixation … workers are trying to figure out where they should be after the pandemic”.
The Fed has been caught off guard over the past week by the 4.2% annual inflation rate reported on Wednesday and a weak April employment data reported last week.
(Reporting by Howard Schneider; Edited in Spanish by Ricardo Figueroa)