"The pandemic continues to cast a shadow, especially as the Delta variant constitutes a growing source of uncertainty."
Some companies are taking aggressive action to pass on at least some of the abnormal cost increases to customers.
"June’s big inflation number will ramp up scrutiny of price-related data as policymakers assess whether the economy is at greater risk of overheating."
It is still "appropriate to maintain" near-zero interest rates even though inflation "has increased notably this spring."
“This is likely a shift in market narrative: away from inflation concerns to concerns about the sustainability of growth momentum."
"Temporary is going to be a little longer than we expected initially ... Rather than it being two to three months it may be six to nine months."
“What we’re seeing is a broad expectation that things will really open up in the second half of the year."
The largest gain in the CPI in nearly 12 years reflects in part the comparison to extremely weak inflation a year ago amid pandemic lockdowns.
The central bank expects to maintain ultralow rates until “inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.”
Economists expect the rise in prices to continue into the summer, pushing inflation past the Federal Reserve’s 2% target.
An AICPA survey finds "a resurgent sense of optimism about the economy overall, despite the deep pain that remains in key sectors and industries."
“Overall, compensation costs are likely to remain subdued going forward, reflective of a high level of unemployment that will restrain wages."
