(Reuters) – Monday’s speech by Charles Evans, President of Chicago Federal Reserve Bank, reiterated his belief that the current spike in inflation was largely temporary and would fade once supply-side pressures are resolved. However, he seemed less confident about that claim than before.

Evans stated that he expected more progress and added that signs are emerging that inflationary pressures could be increasing more generally, such as rent increases. “These developments merit careful monitoring. They present a greater upside danger to my inflation outlook than what I believed last summer.”

One of the Fed’s most cautious policymakers, That Evans is raising concern about inflation. This is not surprising considering that prices have been rising at a rate well beyond the Fed’s goal of 2% for several months.

Economists anticipate that the October reading of consumer price index will show 5.8% increase over a year earlier.

Evans pointed out that current high inflation, based both on surveys and the financial markets pricing is only temporary. Evans said that while unemployment is falling quickly, the stronger labor market would likely bring back some of those millions who left the workforce during the pandemic.