St. Louis Federal Reserve Bank President James Bullard said Monday that US businesses are having some problems raising prices on customers for the first time in years, as he warned that inflation could remain high for some time. Amidst the apprehension that high hopes are trapped.
Bullard’s business contacts in his Fed district and across the country “usually say ‘don’t worry my company is going to be profitable because I’m going to raise prices and we haven’t had any difficulty raising prices in this environment,'” Bullard said at an event organized by the International Economic Forum of America.
Bullard is among the US central bank’s strongest advocates for aggressive steps to combat higher-than-expected inflation and the need for two interest rate hikes in 2022. Interest rates are currently close to zero, where they have been since the onset of COVID. -19 pandemic in early 2020.
“I’m concerned about the changing mindset, I would say, about prices in the economy and the relative freedom that businesses feel they can easily pass on increased costs to their customers. For years, not so. It is,” Bullard said.
by Lindsay Dunsmuiro
This News Originally From – The Epoch Times