Fed's Bullard: Policymakers need to account for new inflation risks in coming months

Eren Sengezer FXStreet

St. Louis Fed President James Bullard said on Thursday that there is tangible risk inflation could be even stronger than expected, as reported by Reuters.

"Policymakers will need to account for new inflation risks in coming months," Bullard added. "Full reopening in the US and globally could mean more tailwinds for the US Economy and faster price increases."

Bullard further noted that the upside surprise could push inflation beyond what's needed for the Fed to account for weak inflation in the past.

Market reaction

The US Dollar Index showed no immediate reaction to these comments and continues to fluctuate around 91.80.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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