Officials of the U.S. Federal Reserve believe inflation could see an uptick in the coming months but reiterated that this is temporary, according to Bloomberg Quint.
- Governor Lael Brainard said any upward drivers are unlikely to be embedded in the ongoing inflation rate.
- Brainard assured that the Fed has the tools and the experience to bring inflation back to the target should movement threaten long-term expectations.
- St. Louis’s James Bullard said an uptrend is expected, but temporary. This will flow through to expectations that will get inflation above 2% this year, and into 2022.
- Atlanta Fed President Rapahael Bostic said there are a number of inflation drivers, but inflation is not seen to be enduring.
- Central bankers in August adopted a framework that aims to keep inflation at a 2% average, but noted that they would accept modest upward paces after downtrends.