Multiple Layers to the Inflation Watch Story

There are two major questions overhanging the economies of the U.S. and Canada. (1) Will a reemergence of coronavirus infections, mainly among the unvaccinated and tied to the Delta variant of the disease, force a slowdown in what was proving to be exceptional gross domestic product (GDP) growth? And (2), the subject of this article, will rapid price increases compel the Federal Reserve and the Bank of Canada to move more aggressively on interest rates?

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