Comments from the Chicago Fed President:
- If economy grows faster than he expects, it could mean fewer asset purchases this year
- Vaccines make him more confident in his forecast for 4% growth this year
- Doesn't anticipate any inflation data in the next 6 months to change the need for low rates
- Sees unemployment falling to 5% this year, possibly lower
- Overshooting inflation to the tune of 2.5% would be helpful
- If we saw inflation heading towards 3%, we would be talking about adjusting our stance
I sense an inflation-inspired market tantrum at some point this year.