Large financial injections into the US economy will not lead to a sharp increase in inflation. According to representatives of the Federal Reserve. This point of view, in particular, was expressed by the head of the Federal Reserve Bank of Chicago, Charles Evans. Eric Rosengren, who heads the Boston Fed, also said that there may be some growth in consumer prices in the coming months, but it will not be very significant.
Most likely, the increase in inflation will be observed for a short period. The statements of the representatives of the Federal Reserve are a response to criticism of the government's actions by some economists.
They believe that the allocation of such a large amount of funds to support the economy will lead to a sharp increase in prices. The head of the US Federal Reserve, Jerome Powell, also rejects the existence of serious risks associated with inflation.
He added that the stimulus package proposed by Biden is necessary in order to stabilize the situation in the country's labor market. Full employment must be achieved.
Jerome Powell and other representatives of the regulator believe that it is too early to discuss reducing the volume of the asset purchase program.