Americans aren’t happy about higher inflation and how much it’s costing them — but not to worry, the Federal Reserve says.
OK, OK, Fed leaders now admit, inflation is uncomfortably high, and their earlier forecasts were wrong.
Yet the surge in prices this year is mostly the result of the reopening of the U.S. economy, and it’s going to fade soon, they still insist, as they have for months.
That was the message the central bank repeated again last week even as the latest readings on inflation showed another big increase in the cost of living. Consumer prices have jumped 5.4% in the past year to mark the biggest advance since 2008.