Supply chain woes and port congestion are getting attention at the central-bank level, given their effects on inflation. Federal Reserve Chairman Jerome Powell: “It is frustrating to see the bottlenecks and supply chain problems not getting better. In fact… getting worse.”
Powell foresees supply chain woes “continuing into next year, probably, and holding up inflation longer than we thought.”
But could shipping logjams last into 2023, propping up inflation longer than central bankers expect?
Industry experts are talking about a scenario in which high ocean shipping costs and congestion could persist throughout next year, if not into the following year.