As is the case for much of the rest of the world, U.S. Federal Reserve Chairman Jerome Powell is less certain about the future than he once was. Earlier this month, he told the House Financial Services Committee that while at one time it was expected an easing of pandemic-related supply-and-demand imbalances would lead to reduced inflation, now “we can’t act as if we’re sure of that.

“Inflation has been more persistent and higher than we’ve expected,” Powell said.

Americans still need all the things they needed before the pandemic. In fact, with most of us spending more time at home, those who can have been spending more on items such as furniture, appliances, laptops and other electronics. The increase in demand for those items, combined with parts and labor shortages and shipping woes, have led to supply chain problems and higher prices, according to Powell.

As he was saying he was less confident there would be an easing in inflation, Powell also said we should be prepared for the Fed to tighten credit, and perhaps raise its benchmark interest rate next spring. While his remarks are enough to make anyone nervous about what awaits our economy, Powell did have some positive insight. Increases in wages are not likely to increase the rate of inflation.

“We like to see wages move up,” Powell said. “At this point, we don’t see them moving up at a troubling rate that would tend to spark higher inflation …” Well that’s good news. Powell’s words should serve as a reminder that our economy could be feeling the effects of the pandemic for longer than anticipated; and that the future is as unpredictable as ever.