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Commentary The Federal Reserve Bank of San Francisco (SF Fed) on April 14 reported ongoing demand in residential real estate, some tapering in mortgage refinance activity, and hiring of furloughed workers in the hospitality industries where health restrictions have been relaxed. As part of the Federal Reserve’s monthly Beige Book report, the SF Fed provided an update of the current economy in the western U.S., including Alaska, Hawaii, Washington, Oregon, California, Idaho, Utah, Nevada and Arizona. Even though many sectors have a surplus of workers, the SF Fed reported that employers in technology, construction, and transportation were “especially constrained by labor shortages.” This is leading to an acceleration in hourly wages across the region. Regarding inflation, the Federal Reserve report said price pressures are built up across the region “as manufacturers, homebuilders, and providers in health care and in logistics reported rising costs for material, energy, transportation, and labor.” This …