Fed’s Rosengren Doesn’t See 2% Inflation in 2022

The President of the Federal Reserve Bank of Boston, Eric Rosengren, said on Wednesday that it is unlikely for the inflation rate in the United States to reach the Fed’s 2% target next year.

Rosengren also played down the risk of a surge in inflation as the economy recovers from the Coronavirus pandemic, and called for focusing on employment and stimulus.

“Food and energy prices may go up as certain areas of the economy are facing some shortages, but what we really want for inflation is kind of the broad-based inflation rate to be at a sustained level of 2%. I don’t think we are going to see that this year. I would be surprised if we see it before the end of next year.”

“There is a labor market gap and that gap is quite large. We have a lot more to do to try to get people back to work.”