Analysis of Economic Indicators and Supply Impact on Inflation

Key indicators to monitor the economic state include company surveys, weekly unemployment claims, and supply levels. Company surveys and strong unemployment claims suggest stability, while a lack of supply has been a major driver of inflation. Inflation is largely attributed to shortages in chips for cars, underbuilt houses, and workforce shortages. The combination of supply constraints and increased monetary and fiscal stimulus has led to a strong economy but also a concerning inflationary environment.