Fed’s Bullard: Inflation could be at 2.5% for a while

Inflation in the United States could remain at around 2.5% «for quite a while,» Federal Reserve Bank of St. Louis President James Bullard said on Friday as he commented on the Fed’s new inflation policy. Bullard added the move may be possible since inflation has been under the 2% target for quite a while and stressed that interest rates will remain low for a long time.
The central banker added that he thinks the US economy will see one of the best quarters in terms of the gross domestic product (GDP). Bullard predicted that the GDP will jump 30% in the third quarter and that the fourth quarter will also see strong growth.
During the Jackson Hole Symposium earlier in the week, the Fed announced that it will change its inflation policy and aim for 2% inflation on average instead of the previously set goal of at or slightly below 2%.
Fuente: Breaking The News