Federal Reserve Chairman Jerome Powell cited the chip shortage as one of the many challenges facing the US economy as it reopens from the pandemic.

"In some industries, near-term supply constraints are restraining activity," Powell said during Wednesday's press conference. "These constraints are particularly acute in the motor vehicle industry, where the worldwide shortage of semiconductors has sharply curtailed production."

Unfortunately, semiconductor supply issues aren't likely to go away anytime soon.

Welcome to the Delta economy: You can't always get what you want when you want it

Welcome to the Delta economy: You can't always get what you want when you want it

"Honestly I think we're going to be struggling with it well into next year until we can really smooth out some of these bottlenecks," Raimondo said. "It's not going to be this bad, but I don't think it will be back to normal until well into 2022."

Intel (INTC) CEO Pat Gelsinger has warned the shortage could last even longer, potentially stretching into 2023.

Raimondo conceded that timeline is "not out of the question," adding that officials are "going to work hard to do better than that."

By: DocMemory
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