Chicago Fed President Charles Evans said, “inflation will stay more elevated in 2022”, but “we have time to be patient”. In his own view, Fed will not need to raise interest rates until 2023.
Nevertheless, in a speech, he said there are signs that inflation pressures could build up more broadly. “These developments deserve careful monitoring and present a greater upside risk to my inflation outlook than I had thought last summer.”
Separately, Fed Governor Michelle Bowman said, “housing supply issues are unlikely to reverse materially in the short term, which suggests that we are likely to see higher inflation from housing for a while.”
