St. Louis Fed President James Bullard told Marketwatch that recent data have been slightly weak but added that he still expects a very robust economic growth of up to 7% this year and 4% in 2022, as reported by Reuters.
Bullard further noted that the US has had a large inflationary and that the Fed needs to take it into account when calibrating the monetary policy in 2022. Regarding the inflation outlook, Bullard said he sees inflation at 2.5% through 2022 with a risk of it being much higher and forcing the Fed into "inflation-fighting mode."
Market reaction
The greenback continues to outperform its rivals following these comments and the US Dollar Index was last seen trading at its highest level since early April at 93.22, rising 0.1% on a daily basis.
