Headline inflation measures could move above the Federal Reserve’s 2% long-run target in the coming months, due in part to supply-chain bottlenecks that have emerged with the economic rebound and forced prices to increase, Fed Governor Michelle Bowman said today.
“Although I expect these upward price pressures to ease after the temporary supply bottlenecks are resolved, the exact timing of that dynamic is uncertain,” Bowman said during remarks at an industry event. “If the supply bottlenecks prove to be more long-lasting than currently expected, I will adjust my views on the inflation outlook accordingly. At this point, the risk that inflation remains persistently above our long-run target of 2% still appears small.”
