Powell: “We understand better how little we understand about inflation”

Not too sure anybody in 2008 predicted that it would cause above average inflation _but_ not until 2022...

But if you told some economist that there would be a reduction in supply they'd predict either a decrease in demand or an increase in price.

I personally think that the FED is doing the best they can right now. Did they keep interest rate low for too long? Yes. But who could have envisioned a pandemic and then the supply/demand shock after it.

The fed don't have the tools to manage inflation correctly. Congress needs to be taxing all the profit taking resulting from all the tax reductions.

I'm not convinced. I skimmed the article and the key piece of evidence seems to be a linked bloomberg chart that shows corporate profit margins spiking up recently. However, if you go to the source data[1] and zoom in, you see a different picture. Specifically, profit margins were increasing the most between Q2 2020 and Q2 2021, but have since stayed mostly flat. However, that's not in line with CPI[2], which only really took off in february 2021.

[1] https://fred.stlouisfed.org/series/NFCPATAX

[2] https://fred.stlouisfed.org/series/CPIAUCSL