we are talking with thomas hoenig about the u.s. economy. jerome powell, we have heard him say before that inflation is expected to moderate in the coming months, perhaps by the end of the year. do you agree? guest: i think over time it will moderate. i think the transition will be longer than what i have heard him say and others among the fomc. monetary policy continues to be highly accommodative. i think that will have an effect on demand going forward that will keep some upward pressure on prices. i think the supply issues will moderate more slowly. as inflation embeds in the economy, it carries its own way forward. real wages have been falling, and they have. i think we will see more pressures from labor to bring wages up. that will be somewhat inflationary. you can see why they would want those up. i think the fact that we are now in the process of passing an infrastructure bill, which people say we badly need, and i would agree, but there will be additional deficits with that the federal reserve will have to accommodate to keep interes

we are talking with thomas hoenig about the u.s. economy.erome powell, we have heard him say before that inflation is expected to moderate in the coming months, perhaps by the end of the year. do you agree? guest: i think over time it will moderate. i think the transition will be longer than what i have heard him say and others among the fomc. monetary policy continues to be highly accommodative. i think that will have an effect on demand going forward that will keep some upward pressure on prices. i think the supply issues will moderate more slowly. as inflation embeds in the economy, it carries its own way forward. real wages have been falling, and they have. i think we will see more pressures from labor to bring wages up. that will be somewhat inflationary. you can see why they would want those up. i think the fact that we are now in the process of passing an infrastructure bill, which people say we badly need, and i would agree, but there will be additional deficits with that the federal reserve will have to accommodate to keep interest