Supply chain pressures rose in January, according to a report published February 6 by the Federal Reserve Bank of New York, suggesting that shipping interruptions linked to the Middle East have yet to manifest themselves as generalized disruptions.

Reuters reported that the New York Federal Reserve Bank’s Global Supply Chain Pressure Index rose from -0.15 in December 2023 to -0.11 in January 2024. A reading below zero suggests less than normal supply chain pressures.

January’s score is still well below the record 4.33 index reading seen in December 2021 when global supply chains were hit hard by disruptions linked to the COVID-19 pandemic.

The supply chain changes that have taken place in recent years have led to a global surge in inflation that caused the Federal Reserve of the U.S. to increase its short-term interest rate target. However, the recent sharp decline in inflation pressures has allowed the Fed to consider cutting its interest rate target.

“We think inflation is coming down,” said Jerome Powell, chair of the Federal Reserve of the U.S., in an interview with 60 Minutes that was broadcast February 4. “We just want to gain a little more confidence that it's coming down in a sustainable way toward our 2% goal.” During the interview, Powell also said that attacks in the Red Sea could pose a major threat to other nations, claiming that ships diverted around Africa are “going to affect Europe much more than it's going to affect us.”