WASHINGTON — Federal Reserve Bank of Atlanta president Dennis Lockhart Wednesday said long-term inflation expectations are consistent with the Fed’s objective and recent commodity price shocks are likely temporary.
“At the moment, longer-term measures of inflation expectations are reasonably stable,” Lockhart said in remarks before the Council for Quality Growth. “I anticipate that over the next two years, inflation will converge to the Fed’s de facto inflation objective of 2% or a bit less.”
He said the recent run-up in commodity prices, particularly for food and energy, are likely short-term.
“The increase in inflation this year appears to reflect pressures that were largely the result of growing global demand and some supply-side or geopolitical shocks,” Lockhart said.