Transitory is defined as being of brief duration, tending to pass away and not persistent. The problem facing the FOMC is that the four factors driving the current wave of inflation will each have a different and longer shelf life. Base Effects are contributing to the near term surge in headline inflation and will prove transitory. Supply chain disruptions will also be transitory but will last longer than Base Effects, so they will offset some of the initial unwinding in Base Effects. Core inflation is likely to continue to increase as service and...
