Fight vs Global Inflation To Worsen: AP

Rising trade barriers, aging populations, and a broad transition from carbon-spewing fossil fuels to renewable energy could intensify inflation pressures in the coming years.

This concern was a recurring theme in several high-profile speeches and economic studies presented on Friday and Saturday at the Fed’s annual conference of central bankers in Jackson Hole, Wyoming. I Photo: Board of Governors of the Federal Reserve System

This may make it harder for the Federal Reserve and other central banks to meet their inflation targets, as reported by Christopher Rugaber for the Associated Press (AP).

This concern was a recurring theme in several high-profile speeches and economic studies presented on Friday and Saturday at the Fed’s annual conference of central bankers in Jackson Hole, Wyoming.

For decades, the global economy had been moving toward greater integration, with goods flowing more freely between the United States and its trading partners.

Lower-wage production overseas allowed Americans to enjoy inexpensive goods and kept inflation low, though at the expense of many US manufacturing jobs. Since the pandemic, however, this trend has shown signs of reversing.

Multinational corporations have been shifting their supply chains away from China and, encouraged by substantial subsidies from the Biden administration, seeking to produce more items in the US, particularly semiconductors crucial for the production of autos and electronic goods.

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