Fed's Waller: Expecting 2.5% inflation for the year

In an interview with CNBC, Fed Governor Christopher Waller said on Friday that he expects inflation to rise to 2.5% for this year, as reported by Reuterts.

Additional takeaways

"US economy is ready to rip."

"Seeing a 6.5% GDP growth this year."

"Unemployment will drop further."

"We are seeing sustained growth."

"We will see some surge in demand from stimulus, pent up savings."

"We will see a surge but with virus under control and 70% vaccinated, fundamentals for good strong growth are there."

"We have to keep in mind, we are not there yet."

"We still need to make up for lost ground, we still have a long way to go."

"No reason to start pulling the plug."

"Temporary surge in inflation will not last, bottlenecks will go away."

Market reaction

The US Dollar Index edged lower following these remarks and was last seen losing 0.16% on the day at 91.52.