Wells Fargo ( (WFC.PRN) ) Chief Executive Charlie Scharf warned that “inflation is very, very real," while speaking at a Goldman Sachs Financial Services Conference today, and urged the Federal Reserve to do more to prevent a period of extended inflation.
“Prices are significantly higher for inputs across most industries. Labor shortage and wage increases are extremely real,” he said. “Whether that continues for several years is not all that relevant but it certainly will have an impact over the next year or so."
At the conference, Goldman Sachs Executive David Solomon also warned of a period of extended inflation, but in an interview with CNBC doesn't expect it to rise to the levels seen in the 1970s.
When the pandemic hit the U.S., the Federal Reserve responded by purchasing trillions of dollars of bonds and other assets, in order to stabilize the economy as much as possible.
The Federal Reserve has begun winding down this program, but Scharf and other analysts are pushing for the Fed to hit the brakes on asset purchases.