At least one White House economic adviser sees inflation lasting longer than the Biden administration thought it would be creating headwinds for the U.S. economic recovery.
Jared Bernstein told FOX Business he sees inflation ending around 4% this year but settling back down to 2.3% in 2022. The catch: He cannot say when that will happen and believes we might see elevated inflation into the middle of next year.
For Bernstein, the number-one issue causing prices to rise is the supply chain disruptions that have plagued businesses. He believes once that sorts itself out, inflation will subside. Bernstein adds the supply chain issues seem to be more troublesome than first thought and are taking longer than anticipated.
On Thursday, Bed Bath & Beyond said profits will take a hit due to inflation, the delta variant of the coronavirus and supply chain issues.
The retailer joined Costco, which also cited supply chain issues as a reason for limiting purchases on key products, including paper towels and Kirkland water.