Economics
Fed’s Bullard Sees 50% Odds High Inflation Will Persist in U.S.
- The Fed can’t count on price surge abating next year, he says
- ‘The problem now is we will have too much inflation’: Bullard
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Federal Reserve Bank of St. Louis President James Bullard said this year’s surge in inflation, which most central bankers view as temporary, may well persist amid a strong U.S. economy and tight labor market.
“While I do think there is some probability that this will naturally dissipate over the next six months, I wouldn’t say that’s such a strong case that we can count on it,” Bullard said Thursday during a virtual discussion hosted by the Euro 50 Group. “I would put 50% probability on the dissipation story and 50% probability on the persistent story.”