Comments from Bullard:
- There may be more inflationary pressure in 2021 than usual
- Not reasonable for 2nd wave to dominate forecasts
- Fatality rates from virus unlikely to reach March/April levels
- Fed can afford to 'wait and see' on policy and economy
- Inflation could rise to 2% as soon as next year
I think it's highly likely that inflation will be at 2% of above in Q2 of 2021 as a vaccine is rolled out and there are extremely easy year-over-year comps on gasoline and clothing. The Fed can look through that but I wonder if the bond market will get jittery.
