Macro Matters: is the US economy going to overheat?

The recent news of a significant jump in US consumer prices surprised many. As post-pandemic demand for goods has risen, the US 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 Matters. 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 US economy and the risk of inflation.

Part 1 focuses on recent US 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. 

If you’re enjoying Macro Matters, we’d like to hear from you. Share your thoughts on episodes past or give us ideas on future topics by dropping us an email using macromatters@aberdeenstandard.com. You can also continue the conversation with us on LinkedIn too.

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If you missed last week's episode of Macro Matters, catch up now and join Paul, and our guests Sree Kochugovindan and Robert Gilhooly as they discuss the global shortage of semiconductor chips.

 

Transcript

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