Boston Fed President Eric Rosengren said, “we are going to see somewhat of a pickup in inflation” in the coming months. He added that food and energy prices may go up as “certain areas of the economy are facing some shortages”.
However, Rosengren also emphasized what Fed want is “kind of the broad based inflation rate to be at a sustained level of 2%”. He didn’t expect that to happen this year. “I would be surprised if we see it before the end of next year,” he said.
Separately, Richmond Fed President Thomas Barkin said he is “quite optimism” on US outlook this year. The first third of the year will be most challenging. But the second phase around mid-year will see vaccinated people re-engaging in activities. Finally, the third third of the year should see a return to a more normal business environment.
