Opinion: US inflation could explode to 10 per cent by next year 14 Jan, 2021 10:24 PM 5 minutes to read The US faces a tough year as it continues to struggle against the pandemic. Photo / Getty Images The US faces a tough year as it continues to struggle against the pandemic. Photo / Getty Images Other Opinion: Inflationary pressures are building up rapidly across the US economy, forcing the Federal Reserve to shift gears and signal a much earlier rise in interest rates than previously suggested. David Clarida, the Fed's vice-chairman and policy guru, has announced that rate rises will kick off once US inflation tops 2 per cent and remains there for a year. While the language was couched in reassuring terms, it amounts to regime change in monetary policy and has serious implications for overheated asset markets.