An index tracked by the New York Federal Reserve on Friday, October 4, testified that the resolution of the strike at United States ports is likely to be a factor in reducing pressure on global supply chains.
The regional Fed bank’s global supply chain pressure index was fixed at 0.13 in September. It is worth noting that in this case, there is a decrease in the indicator. Also, in the context of the corresponding dynamic, the completion of the upward tendency was recorded, within which the mentioned index increased from -0.96 in April to 0.2 in August. It is worth noting separately that this indicator measures how readings deviate from historical averages.
Since the beginning of last year, pressure in the global supply chain has fluctuated within the normal range or even below the norm. The relative softness of the corresponding indicator has become an important impact factor in the context of lower inflation. The appropriate state of affairs provided the Federal Reserve with an opportunity to begin easing monetary policy.
Disruptions in the supply chain during the initial period of the coronavirus pandemic became one of the most sensitive factors composing the system of circumstances that triggered an increase in inflation in the United States to a 40-year high in 2022.
At some point, progress in reducing inflationary pressures was threatened by strikes by port workers on the US East Coast and Gulf Coast. It is worth noting that these strikes have been suspended. Against the background of the relevant events in the financial markets, there were fears that a trade disruption could occur, which would provoke an increase in inflation.
