Fed's Bullard: Inflation to be more persistent than some people expect

"The last time we had a major run-up in the pandemic in December and January, it didn't affect the economy as much as predicted," St. Louis Fed President James Bullard told the Washington Post on Wednesday, as reported by Reuters.

Additional takeaways

"US firms and consumers have found ways to work, produce and consume while the pandemic is still going on."

"There have been pretty good macroeconomic outcomes despite the pandemic."

"For people in high physical contact jobs, there is still some hesitancy to go back to work because of the pandemic."

"Delta variant has put a question mark on schools opening this fall."

"We've had a major inflationary shock."

"I think inflation is going to be more persistent than some people expect."

"Expecting inflation of 2.5% to 3% in 2022."

"Inflation is going to come down but not as fast as some people want."

Market reaction

The greenback remains on the back foot following these comments and the US Dollar Index was last seen losing 0.22% on the day at 91.87.