This is because some of the factors driving inflation in the United States are global, including the disruption to goods production and trade during the pandemic, the shutdown and reopening of large economies, and the more recent disruption of food and energy supplies due to conflicts abroad.
Monetary policy can do very little to improve supply disruptions, but it can help bring supply and demand into better alignment. While the path ahead looks uncertain, I am encouraged by three specific developments. The first is the ongoing strength of the labor market, which was further supported with last Friday's jobs report.