Third-quarter GDP is on track for 30% growth, and such strong improvement can lift inflation closer to its new target, James Bullard, president of the Federal Reserve Bank of St. Louis, said Friday.
The third quarter is "the biggest growth quarter of all time in the US," and it could bring "more inflation than we have during pre-pandemic era," Bullard said. Economists largely expect gross domestic product growth to hit record highs in the third quarter as reopenings and partial containment of the coronavirus bring activity back online. Bullard anticipates GDP to be "off the charts," and that the rebound will drive inflation closer to the central bank's new target.
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