Fed's Bullard: US will see inflation in 2021 and some will “hang on” in 2022

Ross J Burland FXStreet

In a CNBC interview, Federal Reserve James Bullard has stated that the US will see inflation in 2021 and some will "hang on" in 2022.

He said that inflation 2022 could be 2.5% and that the economy is growing very rapidly.

Noting the Nonfarm Payrolls miss, he said it is a bit too early to expect strong job growth.

He said the benefits are impacting some people's incentives to return to work, but it is not the only factor.

He also explained that he wants to be out of pandemic "more solidly" before considering taper talk or any policy change.

He added that the housing markets looks "extremely strong," hopes that supply responds.

There has been no reaction in the market to his comments.

Meanwhile, Wall Street has lost ground on Tuesday as rising commodity prices and labor shortages fueled fears that that near-term price spikes could translate into longer-term inflation.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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