But I expect that these pricing pressures will be temporary, easing over the course of this year as supply bottlenecks are gradually resolved. Beyond this year, some observers have expressed concern that a rapid recovery in aggregate demand amid substantial fiscal support and accommodative monetary policy could lead to undesirably high inflation.
While I expect that the stronger economy will push up inflation somewhat, let me explain why I do not expect pricing pressures to be excessive and why I believe the Federal Reserve is likely to continue supporting the economy for some time through accommodative monetary policy.