Lost in all the doom and gloom about the recent spurt in inflation is an emphasis on the most impactful cause:
The economy gained 6.5 million jobs in 2021 - by far the most on record. The unemployment rate plummeted, much faster than had been anticipated. And so yes, the economy recovered faster than was anticipated and some shortages developed. Including most importantly, of labor.
And yet despite the elevated inflation readings, interest rates have remained stunningly low, supporting the financial markets as we see every day.