U.S. companies are having trouble raising prices for customers for the first time in several years, St. Louis Federal Reserve Chairman James Bullard said Monday, warning that inflation will remain high for some time.
Bullard said his central bank’s jurisdiction and business relationships across the country “generally do not worry if my company makes a profit because I’m going to raise prices, and we have no difficulty raising them in this environment.”
Bullard is one of the most active supporters of the US Federal Reserve fighting higher inflation than expected, and is pushing for two interest rate hikes before 2022.
The US benchmark interest rate has been close to zero since the onset of the Govit-19 epidemic.
“I’m worried about the change in mood, the pricing in the economy and the relatively independent companies think it’s easy to pass on the rising costs to their customers. It’s not for many years.” Bullard.
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