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Richmond Federal Reserve President Tom Barkin  says ”will see inflation spike this year, return to normal next year.”

Earlier, he said the  US  economy may be primed for several years of above-trend growth as families spend perhaps $2 trillion in excess savings banked during the pandemic.

The Fed’s pledge not to raise rates or curb $120 billion in monthly bond purchases until the economy more clearly recovers “is quite explicit and outcome based,” Barkin said. “When we hit the guidance I want to normalize as much as the next guy. But I want to hit the guidance.”

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