Bernanke: Inflation will Moderate in 2022 with 2% to 3% Growth and Full Employment
Look forward to moderating inflation, 2% to 3% growth and full employment in 2022, according to Ben Bernanke.
Bernanke was a keynote speaker yesterday at the opening day of the Schwab IMPACT conference, which was held virtually. He served as chair of the Federal Reserve Board from 2006 to 2014, a period which included the financial crisis. He spoke on a panel along with Mark Carney, a former governor of the Bank of England.
The U.S. economy slowed in the second half of this year, Bernanke said, as monetary and fiscal support waned, and unemployment declined. Vaccine reluctance and supply chain shortages, along with issues in the labor market, mean that we should expect 5% to 6% growth this year and 3% next year.
It is one of the “oddest” labor markets ever, he said. Employment is five million below trend, but there are record job vacancies due to people “taking their time” to decide on their career path.
By next September, he expects the U.S. to be at full employment.
The Fed succeeded in getting inflation higher than it wanted, Bernanke said, but it will moderate and come down to a level that the Fed is comfortable with.