Why the Federal Reserve and the ECB have a tough job ahead of them
Let us make the realistic assumption that the Federal Reserve and the ECB want to bring inflation back to 2% in 2024. This objective will be difficult to achieve, since : The shortfall in fossil fuel supply relative to demand will continue to drive up oil, natural gas and coal prices; A boost to purchasing power through dissaving and fiscal deficits is inflationary; The very significant hiring difficulties of companies and the presence of many job vacancies will lead to continued job creation even if the economy slows down.