MNI BRIEF: Fed's George: Inflation Could Hit 2% Goal Quicker

Inflation could bounce back stronger than expected and could approach the Fed's 2% average objective "more quickly than some might expect," Federal Reserve Bank of Kanasa City President Esther George said Tuesday.

"To the extent that a post-vaccine bounce-back boosts demand and prices in these sectors, including airfares and hotel accommodation, inflation could move up quickly," she said in remarks prepared for a virtual conference. "Such a scenario does not suggest higher inflation is a near-term threat, but rather that inflation could approach the Committee's average inflation objective more quickly than some might expect."

She added that an accommodative monetary policy stance is "appropriate" and "it is too soon to speculate about the timing of any change in this stance."