(Reuters] – Despite a consensus that the U.S. labor force has stabilized enough for it to begin reducing its monthly bond purchase as early as next month by the Federal Reserve, policymakers are divided on how they can combat rising inflation.

On Thursday, the U.S. government announced that producer prices increased 8.6% over the twelve months to September. This is the largest year-on-year increase in almost 11 years. The data on Wednesday revealed that U.S. consumer price rose 5.4% in the same time frame.

James Bullard, President of St. Louis Fed, described the Euro50 Group trend on Thursday as “concerning”

Bullard indicated that there are some chances that this phenomenon will dissipate naturally over the next six-months, but he didn’t think it was so strong that we could count on it happening.

Bullard is pushing the Fed to reduce its monthly Treasuries purchases and mortgage-backed security purchases by $120 billion next month. Minutes from the Sept. 21-22 U.S. Central Bank policy meeting indicate that policymakers support this move, with plans for closure of the process in the middle 2022.

Bullard wants to stop bond purchases in the first quarter 2022, so that the Fed can raise interest rates quickly if inflation continues to be high.

Fed pledges to maintain its overnight benchmark lending rate at its current low level, until full employment is achieved. However, inflation has reached its 2% target and will continue to rise modestly for some time.

When inflation was at a low of 2% over many years, the parameters were set by central banks. This challenge was meant to raise it rather than lower it.

The opposite problem could be happening now as consumers are fueled by pent up demand and spending increases in the reopening economy. Businesses, however, may struggle to keep up with this increase because of supply bottlenecks.

Fed Governor Michelle Bowman raised concerns about inflation during a speech she gave to South Dakota State University on Wednesday. Bowman also called for the immediate resumption to bond-buying taper next month.

Others have different views.

Mary Daly of San Francisco Fed, one the most conservative policymakers in San Francisco, stated to CNN International that inflation was not tied to monetary policies at this point and that tightening policy would be unlikely to reduce it.

Daly claimed that prices rising are going to continue for as long COVID is here. This was because of supply-chain bottlenecks created by pandemic related disruptions. And inflation would end once the pandemic had ended.

Daly stated that it was premature to talk about rate rises. However, he noted that the point has been reached when “we feel like” we could dial back the amount of support we provide to the economy.