By
NICK GOSNELLHutch
Post
HUTCHINSON — Creighton University economist Ernie Goss expects action from the Federal Reserve soon.
"I think it's going to be probably November," Goss said. "Certainly, before the end of the first quarter of 2022 we are going to see the Federal Reserve pull back ... some of their stimulus. That doesn't mean they are stopping their stimulus, they are just going to put less money out there into long-term bonds."
Some long-term rates are already higher in anticipation of future action.
"The 10-year Treasury yield on U.S. Treasury bonds, that's almost to 1.7 percent," Goss said. "Historically, that's way below the historical average. Still, in these times, that's a bit higher than what we've seen in the past."
That will have an upward impact on consumer interest rates throughout 2022 and with continued supply chain issues, overall prices look to continue to rise. Also, people are not yet getting back in the workforce in large numbers.
"Despite the fact that we continue to grow, we're not growing jobs," Goss said. "We're not getting back those jobs we lost to the pandemic. It's an odd situation. The President's been speaking about it, but I'd have to say, some of what he's said is not exactly what I would agree with."
President Biden sees passing his human infrastructure plan as a key to long-term economic growth, but negotiations on the overall size of that bill are still ongoing.