Macro minutes: Is the U.S. economy going to overheat?

The recent news of a significant jump in U.S. consumer prices surprised many. As post-pandemic demand for goods has risen, the U.S. is experiencing supply bottlenecks putting upward pressure on prices. Combined with Biden’s economic stimulus, this has caused growing concerns about the risk of inflation. Will the economy overheat? And how will the Federal Reserve respond?

Welcome to another week of Macro minutes. In this episode, we welcome our guest host, Luke Bartholomew who is joined by James McCann, Aberdeen Standard Investments’  Deputy Chief Economist.  The post-pandemic surge in consumer prices raises concerns over potential overheating the U.S. economy and the risk of inflation.

Part 1 focuses on recent U.S. inflation data and the bottlenecks in the goods and services sector.

Part 2 considers the outlook for inflation, the risks in 2022-23 and  the Federal Reserve’s response. 



 
 

Transcript

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