by Howard Schneider
(Reuters) – All signs are pointing to a rise in U.S. inflation, St. Louis Federal Reserve President James Bullard said on Wednesday, but though the economy may boom later this year, it’s too early to say when the Fed could take any steps to pull back on its super-easy policy.
The money supply has “exploded,” fiscal deficits are “off the charts” and a hot economy may either already be here or “just around the corner,” Bullard said in an interview at the Reuters Next conference.
And with vaccines going first to the elderly and others who are most at risk of dying from COVID-19, he said, daily deaths – now likely near their peak – will drop. “You are going to see that’s going to have big ramifications for the economy” as people worry less about the risks, he said.