White House officials have warned that supply chain issues may lead to Americans having to go without some Christmas treats this holiday season.
The Biden administration is scrambling to try to resolve global supply bottleneck issues affecting US ports, highways, and railways and have now said that Americans may see higher prices and some empty store shelves.
The supply issues facing the US are caused in part by the global pandemic and could decrease spending as the US tries to recover from Covid-19, and could possibly lead to political trouble for President Joe Biden.
The economy is still the most important issue for both Democrats and Republicans, a recent Reuters/Ipsos poll has shown.
The administration is attempting to deal with supply issues causing inflation of a range of products, from meat to semiconductors.
The White House put a “bottleneck” czar in place in June along with a task force meeting weekly to urge private companies to minimize supply issues.
But the issues have led to less than stellar earnings outlooks for retail and transport companies and the federal reserve have estimated that the rate of inflation for 2021 could be as high as 4.2 per cent, with the target rate being 2 per cent.
When asked about Christmas shopping, a White House official told Reuters that “there will be things that people can’t get”.
“At the same time, a lot of these goods are hopefully substitutable by other things ... I don’t think there’s any real reason to be panicked, but we all feel the frustration and there’s a certain need for patience to help get through a relatively short period of time,” the official added.