KC Federal Reserve leader says tight labor market continues to fuel inflation

A Kansas City Federal Reserve leader says a tight labor market continues to fuel inflation. 

Kansas City Fed Executive Vice President Joseph Gruber says four factors play the largest role in pushing prices higher in the United States:  energy costs, supply chain problems, workforce, and rental costs.

Gruber says the lack of workers seems to be the biggest driver of inflation. . .“So we’ve heard a lot about the tightness of the labor market. We know that there’s a lot of vacancies relative to a number of unemployed people. These are things that are making it difficult for firms to hire the workers they need or to increase the output that would help bring prices down,” he says.

Gruber speculates that the September jobs report will weigh heavily as the Federal Reserve Board of Governors decides whether to increase interest rates as the Fed attempts to rein in inflation.