Dallas Fed President Robert Kaplan expected inflation to decline in the fall, but may remain elevated by year-end. He added that Fed will continue to monitor inflation closely, as the economy works through imbalances caused by the pandemic.
Meanwhile, he expects GDP to grow by 6.4% this year, while unemployment rate will fall to 4% by year end.
Kaplan also reiterated that it’s possible for Fed to raise interest rates before the end of 2022. “I haven’t seen anything from that point to today that’s changed my view,” he added.
