MNI BRIEF: US CPI Jump Temporary: Minneapolis Fed's Wright

Minneapolis Fed Research Director Mark Wright said during an MNI webcast Wednesday that the latest jump in inflation appears transitory and the pandemic has left the U.S. economy 10 million jobs short of its potential.

Some signs of price gains including rising wages for lower-paid workers and a climb in what had been low inflation expectations are positive, Wright said. "When you look into the details of the data, there is reason to realize this is truly a transitory event," he said of the April CPI report.

While there has been progress in controlling Covid, herd immunity has been a difficult goal to reach in the U.S. and even more of a challenge internationally, he said. Sources have told MNI the Fed may tighten sooner based on price gains.