Growth in the key monetary aggregates and bank lending has turned up over recent months, driven in part by the Fed’s continued asset purchases.

In a relatively quiet week, the few data releases we did get added to signs that shortages are pushing up prices further and restraining the pace of economic recovery.

The extent of the surge in CPI inflation in April specifically caught us a little off guard, although we had been expecting a pick-up in response to the reopening and the shortages of raw materials...

The NFIB and JOLT surveys published today add to evidence from the April employment report that labour shortages are widespread, pushing up prices and potentially acting as a brake on the recovery.