Fed's Brainard: Some bottlenecks and supply chains are contributing to inflation

"We are in the middle of an unprecedented rebound in the US economy, Federal Reserve Governor Lael Brainard said on Monday, as reported by Reuters.

Additional takeaways

"Have been expecting some higher inflation readings in the near term because of base effects."

"Prices are rebounding from pandemic lows and some price increases are linked to a surge in demand," 

"Relief payments and other assistance are affecting spending."

"Some bottlenecks and supply chains are contributing to inflation."

"Expecting price pressures linked to bottlenecks and reopening to subside over time."

"If we did see inflation that moves persistently above our goals, Fed has the tools to guide inflation back down."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index down 0.12% on the day at 89.92.