St. Louis Fed President James Bullard said on Thursday that there is tangible risk inflation could be even stronger than expected, as reported by Reuters.
“Policymakers will need to account for new inflation risks in coming months,” Bullard added. “Full reopening in the US and globally could mean more tailwinds for the US Economy and faster price increases.”
Bullard further noted that the upside surprise could push inflation beyond what’s needed for the Fed to account for weak inflation in the past.
The US Dollar Index showed no immediate reaction to these comments and continues to fluctuate around 91.80.