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The Importance of Resilience in the US Economy
Inflation is a mix of both supply and demand factors. The disruptions from the pandemic were severe, it's certainly taken us longer than we expected to work through them. We're still seeing many continuing challenges with working through that. And just as we thought we were kind of at the peak of the disruption,. I think the war between Russia and Ukraine provided an additional set of challenges. But pressure on markets has led to price increases which in turn has proved very sticky. That's why it puts the Fed in a very tough bind.