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Inflation data around the end of this year will be key to whether the expected uptick in inflation in coming months is transitory or long-lasting, said Fed Vice Chairman Richard Clarida on Friday.
Fed Chairman Jerome Powell has said that inflation could pick up this year due to bottlenecks but that this price pressure would not persist.
Clarida said the Fed’s forecast is that inflation will move above 2% for a time this year and “for inflation to return later this year to around 2%.”
“We would expect those to be transitory and as the year progresses and we go into next year, if they’re not, then we’ll have to take that into account certainly,” Clarida said on Bloomberg television Friday.
