Comments from the Chicago Fed President:
- Once inflation is at 2% and on track to overshoot, Fed can slowly raise interest rates
- Inflation will be the real test for timing liftoff
- There will be transitory price increases this year but will struggle to get 2% inflation in 2022
- If economy recovers faster, Fed could hike faster
He raises an interesting point about 2022. Once the pent-up demand fades and (hopefully) the supply bottlenecks ease, there should be some disinflationary pressure. There's very little talk about that.
