February 25, 2021
What Does Inflation Look Like?
Julie Smith
Julie Smith, professor of economics, was quoted extensively in the Feb. 23 edition of NPR’s Marketplace about her views on how the next round of coronavirus relief funding may affect inflation.
The program was in response to Federal Reserve Chairman Jerome Powell’s remarks to the Senate Banking Committee this week where he emphasized that the central bank is open to seeing inflation run slightly above its 2 percent target for a period of time. He said he does not expect inflation rising to troublesome levels as a result of a coronavirus relief package.
“A 2% inflation rate means that prices [are] rising, but there isn’t sort of any sticker shock that comes when you maybe go to the grocery store, or you are thinking about buying a house or buying a car. They’re just rising at the sort of gradual rate,” Smith said in the segment, her second appearance this month on NPR’s flagship business news radio program and podcast.
