Moody's Chief Economist: Supply Chain Issues, Inflation Probably Won't Be Resolved 'Until This Time Next Year'

On Thursday’s “CNN Newsroom,” Moody’s Analytics Chief Economist Mark Zandi stated that fixing the problems in the supply chain and moderating inflation “is going to be a bit of a process. It probably won’t be until this time next year.”

Zandi said, “[T]o get inflation back down to something we’re more comfortable with, I think, requires that we get to the other side of the pandemic, that the infections don’t do the same kind of damage that Delta did. Now, it feels like we’re moving in that direction. More people are getting vaccinated and it feels like the Delta wave is now starting to wind down and hopefully, the pandemic will continue to move in the right direction here. And if it does, I think inflation — the problems in the supply chains and the labor markets will iron themselves out and inflation will start to moderate, but as Fed Chair Powell said yesterday, that’s not going to happen next month or next quarter. This is going to be a bit of a process. It probably won’t be until this time next year.”

Zandi added that he expects gas prices “to be back closer to [$]3 by the spring and back closer to [$]2.50 a year from now.”

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