Dec 05, 2021

Fed Chair said inflation is around; Goss sees big supply of money

Posted Dec 05, 2021 9:00 AM

By NICK GOSNELL

Hutch Post

HUTCHINSON, Kan. — Fed Chair Jerome Powell is keeping his job, but he's also tempering his outlook for the economy.

"He's been saying that inflation is transitory," said Creighton University economist Ernie Goss. "He removed that language and said, well, maybe it's not transitory, maybe it's here for awhile. It is here for awhile and what it means, his reappointment, is don't change boats in the middle of the stream."

The economy is slowing, but it's still growing.

"We are hitting somewhat of a wall," Goss said. "It's not a big wall, but it's slowing growth. It's got a lot to do with the supply chain disruption and we're also talking about, again, the inability to find and hire workers. That's slowing the growth, as well."

Right now, though, there's still plenty of money to spend.

"You know, we've had the Trump stimulus plan, we've had the Biden stimulus plan, then we've had the Federal Reserve stimulus plan, now we've got the Build Back Better plan which is before the Senate right now," Goss said.

If all of that passes, there's still plenty of opportunities for both business and government to spend, even with inflation where it is, as long as they can find both materials and labor.