Fed's George: Do not dismiss risk of higher inflation
|Federal Reserve Bank of Kansas City President Esther George said that it is hard to distinguish between one-off 'bottlenecks' and broad lack of capacity
Geroge says:
''Do not dismiss risk of higher inflation.''
''Fed should not be 'rigid' in approach to policy, or lose sight of possible changes to the economy as it reopens.''
Meanwhile, global equities had a strong start to the week while data has not fully lived up to the strong-inflation narrative.
''The recent fall in breakeven inflation expectations suggests the market is satisfied with that framework for now and the dominant market expectation is that future policy tightening will be moderate, yield curves will flatten in line with historical norms and there will be a soft landing for inflation,'' analysts at ANZ bank said.
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