The U.S. Office of Management and Budget on Friday revised its inflation outlook for Q4 2021 upward to 4.8%, more than twice the 2% level forecast in May, after the Commerce Department reported consumer prices in July grew more than 4% from a year ago. It means back in May, although talks about the global economy’s reopening were full-fledged, the officials didn’t expect such a robust spike of inflation. That increase brings the White House at par with the Federal Reserve forecast. Both see inflationary pressure easing rapidly next year, dropping to 2.5% by the fourth quarter of 2022 and 2.3% by 2023, however, both provide little evidence supporting their views.

In his widely covered Jackson Hole speech Friday Federal Reserve Chairman Jerome Powell signaled that the board of governors may begin winding down its emergency bond-buying program some time this year repeatedly emphasizing that tapering of asset purchases must not be viewed as the first step towards tightening of the monetary conditions. Then again, it may or may not happen as the Fed continues monitoring incoming economic data.

During his online appearance at the annual conference hosted by the Federal Reserve Bank of Kansas City, Powell gave a speech that offered something for everyone: Inflation is hot but temporary; hiring is strong but could be better.