(Reuters) – All signs are pointing to a rise in U.S. inflation, St. Louis Federal Reserve President James Bullard said on Wednesday.
The money supply has “exploded,” fiscal deficits are “off the charts” and a hot economy may either already be here or “just around the corner,” Bullard said in an interview at the Reuters Next conference. Still, he said, the Fed needs to regain credibility on inflation after it has underrun the Fed’s 2% target for the last decade, and won’t preemptively react to a rise in inflation by tightening policy.
(Reporting by Howard Schneider and Ann Saphir)
