The Federal Reserve Bank of St. Louis says inflation will remain a wild card in GDP outlook for 2022. In fact, they point out that inflation is on pace to be the highest in more than 30 years. In a recent post, they discuss their GDP economic outlook for 2022 with an eye on inflation.
Their key takeaways:
- During 2021, the U.S. economy rebounded strongly, but the rise in inflation surprised many.
- Headline and core inflation rates for the personal consumption expenditures price index will likely end 2021 at their highest in 30 years or more.
- The U.S. is expected to post strong GDP growth in 2022. If higher inflation persists and erodes household purchasing power further, that could put growth at risk.
Click here to read the full report at the Federal Reserve Bank of St. Louis.
