Fed’s Bostic Does not Expect Huge Surge in Inflation

President of the Federal Reserve Bank of Atlanta, Raphael Bostic, said that although huge stimulus spending and easing monetary policies could lead to a rise in consumer prices, he does not expect a surge in inflation similar to what the United States witnessed in the 1970.

“There is a lot of concern that with all this demand and all this money that is available that there is going to be a rush to buy and engage and that is going to drive prices up. That is true for the short run.”

Stimulus funds will not last forever, as “once they flow through the economy I think we will be in a better position to get a true signal of what inflation is.”

Comments by Bostic echo recent remarks by the Federal Reserve Chairman, Jerome Powell.