Elevated prices to come down as supply problems are addressed

Chicago Federal Reserve Bank President Charles Evans told CNBC on Tuesday that he thinks elevated prices will come down as supply problems are addressed, as reported by Reuters.

Additional takeaways

“Inflation will be 3.5% to 4% this year, will be a challenge, but it’s not a monetary policy issue.”

“Once inflation comes down, monetary policy will still be challenged to get inflation up to 2% sustainably.”

“Households are still tentative, given Delta.”

“We’ve made a lot of progress on economy and we’re close to time we’ll taper.”

“Would not surprise me if taper is done by mid-2022 or the fall, assuming we continue to see momentum in economy.”

“Expect unemployment to be 3.5% or 3.7% next year.”

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen rising 0.14% on the day at 93.93.