Powell indicated that while there may be instances where a lack of competition in a specific industry gives rise to pricing power, there’s little evidence that this can explain the kind of economy-wide inflation the U.S. is experiencing today. “Rising input costs were cited as a primary contributing factor across a broad swath of industries, with elevated transport costs particularly significant. Labor cost increases and ongoing materials shortages also contributed to higher input prices,”
Businesses in New York “continued to report substantial increases in selling prices, input prices, and wages,” the New York Fed said.
The Cleveland Fed said that labor “shortages and supply chain challenges resulted in widespread increases in wages, non labor costs, and selling prices.”
The Richmond Fed said there was an “elevated rate of price growth” to do higher costs.
In Chicago, wages and prices reportedly increased “rapidly” and prices in the Kansas City Fed’s territory saw a “robust” increase.
Companies in the region covered by the St. Louis Fed reported an increased ability to raise prices.
The Dallas Fed said prices rose at a “rapid clip.” “Wages and price levels climbed notably,” the San Francisco Fed reported.
There was some positive news on inflationary pressures in Boston and Philadelphia. “The labor market remained tight with modest growth, while wages and prices grew sharply. However, there were signs that wage and price increases may be plateauing,” the Philly Fed reported.
“Upward wage pressures remained substantial but eased for some positions. Prices increased moderately. Contacts were optimistic for spring but noted downside risks tied to inflation and supply chain disruptions,” said the Boston Fed.
All the Fed Presidents used wages as one of the main causes. Not one Fed President claimed corporate greed.