MNI BRIEF: Fed's Rosengren Sees Sub-2% Inflation For 2 Years

Boston Fed chief Eric Rosengren said Wednesday it is unlikely for the U.S. economy to see a broad sustained increase in prices until likely the end of 2022.

"What we really want for inflation is kind of the broad-based inflation rate to be at a sustainable level of 2%," Rosengren said. "I don't think we're going to see that this year. I'd be surprised if we see it before the end of next year."

Rosengren noted increases in commodity prices and said inflation will improve in the first half of 2021 but will be temporary in part due to "more of a statistical anomaly" from base effects as year-ago figures drop out of the 12 month calculations. MNI has reported the Fed's own forecasts will need to show consisent overshoots of the 2% inflation target before officials consider tightening.