However, even when the economy officially reverses its pandemic losses, signs of trouble will linger. While the unemployment rate has fallen, about 8.4 million jobs lost during the pandemic have yet to return. The GDP report noted inflation is picking up: prices grew at a 3.5 percent annualized rate in the first quarter and are up 1.7 percent from a year earlier. Economists, including those at the Fed, expect prices to continue to pick up in the near term, reflecting ongoing supply-chain problems that are expected to ease as the global economy reopens.

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