Home Uncategorized Fed says material shortages, hiring troubles holding back recovery

Fed says material shortages, hiring troubles holding back recovery

Fed says material shortages, hiring troubles holding back recovery

Shortages of materials and “difficulties in hiring” are holding back the U.S. economic recovery from the coronavirus pandemic and have driven a “transitory” bout of inflation, the Federal Reserve said on Friday.

“Progress on vaccinations has led to a reopening of the economy and strong economic growth,” the U.S. central bank said in its semiannual report to Congress on the state of the economy. However, “shortages of material inputs and difficulties in hiring have held down activity in a number of industries.”

The report will be the subject of hearings in Congress next week.
Source: Reuters (Reporting by Howard Schneider; Editing by Paul Simao)

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