Comments from the Boston Fed President
- Higher used cars are not likely to persist
- The best guess going forward is that next year, we’ll see inflation just above 2%
- Expects 7% GDP growth this year
- Sees jobless rate falling to mid-4% by year end
- Expects full employment by the end of next year
- Declines to say if his dot was forecasting a hike in 2022 but says it’s quite possible that conditions could be met for a hike around that time
There’s some real divergence on the FOMC on inflation next and that’s shaping up to be the real battleground. Bullard forecast core inflation 2.5-3.0% and said if it was that late next year I would support a hike.