Chicago Fed President Charles Evans told CNBC that the current spate of inflation wouldn’t last and ultimately will fall below the central bank’s target.

According to Chicago Fed President Charles Evans, the current wave of inflation will not remain and will eventually fall below the Federal Reserve’s target.

Despite the fact that inflation is at a 30-year high in some measures, Evans said that supply chain bottlenecks and other challenges would lessen, and price pressures will fade.

“I’m comfortable in thinking that these are elevated prices, that they will be coming down as supply bottlenecks are addressed. I think it could be longer than we were expecting, absolutely, there’s no doubt about it. But I think the continuing increase in these prices is unlikely.” He said

According to the Fed’s preferred metric, inflation has been at 3.6 percent year over year in recent months, the highest since the early 1990s. Other measures of inflation, such as the consumer price index, show that inflation is significantly higher.

Evans Admitted That the Current Trend is Placing Strain on the Economy

Despite this, the Fed has often stated that it has met the inflation component of its mandate, with inflation running well above the 2% target. As a result, the central bank is anticipated to begin gradually withdrawing its unparalleled support for the epidemic, beginning with a decrease of monthly asset purchases.

According to current Federal Open Market Committee predictions, interest rate rises are not predicted until at least the end of 2022.

While Evans supports the tapering, he believes the Fed will soon be faced with the challenge of managing inflation at healthy levels, which will necessitate keeping rates low.

“It’s just putting challenges on getting a monetary policy to produce sustainable inflation at and above 2% so that we can average 2% over time,” he said.