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Susan Collins, Boston Federal Reserve Bank President
On Friday, January 20, Boston Federal Reserve Bank President and CEO and the first woman of color to hold that position, Susan Collins, explained the elements of price inflation that's currently plaguing the US and the rest of the world.
She said: “The Fed, of course, is monitoring, holistically, all of the different kinds of information, from what’s happening with households, with firms. In terms of the different components of price inflation, there are lots of factors that have led prices to be rising so rapidly. Some of them are factors on the supply side that the Federal Reserve really doesn’t have much influence over at all. And that includes things like longstanding — things like weather conditions. It also, particularly in the food — the bird flu has taken a real toll on, for example, egg prices. And climate change also has impacts. So, there are a lot of longstanding factors and reasons that food prices are traditionally very volatile. And that is certainly impacting households and one of the things that I am very concerned about.”
Unfortunately, she didn't go into the impacts of climate change. What current aspects of climate change have created price inflation? At this time there is no actual evidence of climate change so its impacts can only be based on projected climate change, change that has yet to occur and probably won't during current lifetimes.
While acknowledging price inflation, she doesn't tell us what the Federal Reserve intends to do to alleviate it, if anything, other than monitoring the situation, something we all can do whenever we venture out into the retail world. She did say that eventually the rate of inflation will return to its Goldilocks level of 2% annually and everything will be just fine.
According to the Mises Institute, the Fed itself will be in arrears to the extent of $100 billion or more at the end of the year, its first operating loss since 1915.
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