Shipping containers are seen being moved, Monday, August 16, 2021.
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Adam S. Posen (PIIE)
via The Hill

The Federal Reserve predicts that this year’s inflation spike is transitory and will soon decline once shortages ease. This is overly optimistic. Labor market and supply chain adjustment will take longer, so inflation will persist. But the Fed should not overreact and raise interest rates prematurely, even if inflation overshoots their forecasts.

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