Lauren Rudd Bill Dudley, a senior research scholar at Princeton University’s Center for Economic Policy Studies and former president of the Federal Reserve Bank of New York, has been arguing that inflation will not spiral out of control. Yes, forces are converging to push prices upward. The Biden administration is preparing a massive fiscal stimulus package. The Fed’s monetary stimulus will likely drive the inflation rate above its 2% long-term target. And there is pent-up demand, which recession-damaged businesses will initially struggle to satisfy. So, inflation is likely to head higher. However, we must not overreact. There is a cornucopia of reasons to believe that the inflationary pressures will not result in a runaway situation as we had in the late 1970s. To see why, consider the following points from Dudley.