Fed’s Bullard says inflation may be stronger than Wall Street expects

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Inflation may be stronger in coming quarters than Wall Street now expects, said St. Louis Fed President James Bullard on Friday. “I actually think we’re at a moment where you may see some inflation now,” Bullard said, during a virtual discussion sponsored by the Boeing Center for Supply Chain Innovation at Washington University. The Fed has signaled that it would allow inflation to overshoot its 2% target for some time. The pledge has met with some skepticism on Wall Street because the central bank has failed to hit its 2% target in recent years. Bullard said there were several factors that could push the price level higher: a more relaxed Fed, huge fiscal deficits and possible bottleneck pressures given the 30% annual growth rate expected in the June-September quarter. “I actually think you may see more inflation than we have during the pre-pandemic era… when inflation was very subdued,” he said.
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