Rosengren says inflation not likely to hit Fed’s target through 2022

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo/File Photo

WASHINGTON (Reuters) – Inflation is unlikely to hit the Fed’s 2% target on a sustained basis at least through 2022, Bosten Fed president Eric Rosengren said, with Fed officials not concerned about an immediate jump in prices expected as the pandemic eases.

In coming months “we are going to see somewhat of a pickup in inflation,” Rosengren said in comments to a University of New Hampshire Franklin Pierce Law School online symposium. “Food and energy prices may go up as certain areas of the economy are facing some shortages. But what we really want for inflation is kind of the broad based inflation rate to be at a sustained level of 2%. I don’t think we are going to see that this year. I would be surprised if we see it before the end of next year.”

Reporting by Howard Schneider