Short-Lasting Inflation Depends on Long-Lasting Goods
The Fed blames rising inflation on an unusual jump in the price of durable products like cars and electronics, which it says won’t last
For decades, Americans have enjoyed falling prices for cars, electronics and furniture.
Until the Covid-19 pandemic, that is. For the past year, prices for durable goods have been rising—and not just by a little. Whether those prices come back down is a key part of the puzzle facing the Federal Reserve as it plots how to handle an unexpectedly strong burst of inflation.