The Federal Reserve is anticipating a number of shortages in the U.S. economy, according to Bloomberg.

  • The Beige Book report released Wednesday mentioned “shortage” or “shortages” 31 times. This is the most in at least a decade, and a climb from 19 in the January edition.
  • The number of mentions is more than triple the average number of citations in the eight reports issued since the coronavirus was first referenced in March 2020.
  • Nine references were made to shortages in semiconductors. Most productions of memory chips are made in Asia.
  • Shortages referring to labor appeared 15 times in the report. Truck drivers, constriction workers, and nurses were among the occupations cited.
  • Supply chains warped in 2020 continue to be strained by the pandemic. Hard-to-find raw materials and parts or employees sidelined by sickness provide difficulties.
  • Officials continue to monitor inflation signals. They see it as temporary, but remain alert in case they become more entrenched.