Supply chain imbalances leading to higher inflation are expected to remain temporary, Federal Reserve's Vice Chairman for Supervision Randal Quarles said on Monday, as reported by Reuters.
Additional takeaways
"Fed is also very mindful that we could be wrong on inflation."
"If in a year we were not to see inflation settling back down closer to 2% target, we have the tools at the Fed to address it."
"Policies that are impeding employment will expire in the fall."
"Fed has not identified a specific target for maximum employment.."
"Fed looks at a variety of labor force measures."
"I don't think we need to see labor force participation return to pre-covid levels because of baby boomer retirements."
Market reaction
These comments were largely ignored by market participants and the US Dollar Index was last seen gaining 0.1% on the day at 91.90.
