A few comments from a research note via Jan Hatzius, chief economist at Goldman Sachs
Says the sees strong reasons to support the view at the Federal Reserve that inflation is temporary:
- sees expiring enhanced unemployment benefits in the months ahead as like;ly to prompt workers back to their jobs, which will subtract from wage pressures
- the current rise in prices is being driven by "outliers" that will soon dissipate, resulting in prices coming back to normal levels ahead
Thus:
- "this suggests that Fed officials can stick with their plan to exit only very gradually from the easy current policy stance"
