It also seems likely that a surge of demand may be met by some transitory supply bottlenecks amid a rapid reopening of the economy, leading PCE inflation to rise somewhat above 2 percent on a transitory basis by the end of 2021. Entrenched inflation dynamics are likely to take over following the transitory pressures associated with reopening.
Underlying trend inflation has been running persistently below 2  Details on the CFO survey, which is a partnership of Duke University, the Federal Reserve Bank of Richmond, and the Federal Reserve Bank of Atlanta, can be found on the Richmond Fed’s website at https://www.richmondfed.org/research/national_economy/cfo_survey. 8  -6percent for many years.