In a filing with the U.S.
“I expect that all of these factors will cause inflation to overshoot our 2% longer-run goal in 2021,” Waller said.
The Consumer Price Index , a measure of a basket of goods plus energy and housing costs, jumped 4.2% from a year ago.
Excluding food and energy prices, which can be volatile, the core CPI rose 3% year-over-year and 0.9% on a monthly basis.
The nation’s central bank plans to hold interest rates low at least through 2023.
However, “enhanced” unemployment insurance—$300 in some states— retirements and difficulty in finding childcare has slowed recovery of the labor market.
“I said a few weeks ago that the economy was ready to rip, and in many respects, that is exactly what it is doing,” Waller said.