FED Officials Are Not Concerned About Inflation

FED officials are not concerned about inflation. Authorities do not see the risk of a permanent rise in inflation.

Following statements by the Chairman of the US Federal Reserve (FED) Jerome Powell that, despite the increasing concern about the market, he did not see the risk of a permanent rise in inflation, some FED officials came close to this. Dallas Fed Chairman Robert Kaplan predicted that inflation in the country would rise to 2.5 percent and decline again. Stating that according to this estimate, the Dallas FED predicts the 2021 growth in the USA as approximately 6.5 percent, Kaplan stated that if this forecast is realized, the unemployment rate will decrease to 4 percent at the end of the year. Chicago FED Chairman Charles Evans also shared the view that even 3 percent inflation can be accepted for a certain period of time. Evans highlighted that it will take months to have an idea of ​​whether the rise in inflation is permanent or not. FED member Lael Brainard noted that she expected the inflationary pressures to be 'temporary' with the opening of the economy. Brainard said, "The way forward of our monetary policy is based on results, not looks." In an interview with national radio, Fed Chairman Jerome Powell stated that they are strongly committed to the 2 percent inflation target. Powell made the following statements on the subject: "It seems that rates have responded to the news about vaccination and ultimately growth. So higher growth, higher inflation, low cases in the Covid-19 outbreak. There is actually a sense of improving economic outlook."