Robert Kaplan, president of the Dallas Fed, said on Thursday that the imbalance between supply and demand of labor in the United States could persist for longer and affect price levels.
"this imbalance between labor supply and demand will continue for a longer period of time, so I think there may be some increase in price pressure into next year," Kaplan said.
"We may see moderate prices for used cars, but based on our work, we feel that price pressure may be increasing at the Dallas Fed," he said at a virtual event, reiterating that the PCE price index is expected to rise 2.6 per cent in 2022.
Mr Kaplan said the substantial imbalance between supply and demand continued, with many of the business owners he talked to saying the situation was "a little worse", meaning it would take longer to resolve the problem.