Fed's George (2022 voter) expects Fed's policy rate to be in the neighbourhood of 2% by August and noted that evidence inflation is clearly decelerating will inform judgements about further tightening

Says:

• Inflation is too high and too broad to dismiss while returning it to the Fed's 2% target is the top priority.
• Pandemic may have permanently damaged the economy's productive capacity.
• War or China's COVID lockdowns could drag down growth and take some heat out of inflation.
• Further disruptions from war and lockdowns could add to inflation and require even more stronger Fed action.
• Excess household savings are an important wildcard for the demand outlook.