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He said he thought the Federal Reserve's policy of holding down interest rates would eventually prompt inflation of 8 to 12percentt.
But it cautioned that economic data since the referendum had been limited and said the fall in sterling would prompt inflation to rise from 0.7% this year to 2.5% in 2017.
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He cannot loosen the purse strings for fear of prompting inflation.
Bond yields have risen as the recent revival in the oil price prompted inflation fears, as well as suffering as the euro strengthens.
Among the international factors, we underscore the importance of globalization, intensified through economic integration processes, and a well-managed monetary policy as the most powerful causes prompting inflation convergence within Spain.
And that could prompt more inflation, which would be just as bad for the economy.
A recent report from Goldman , Sachswarned that the Federal Reserve, already fearing that the economy cannot grow any faster without prompting higher inflation, would probably respond to a big package of stimulative tax reductions by pushing up interest rates sharply.
Demand for goods during that spree allowed shopkeepers to raise prices, prompting high inflation.
Rising oil prices are also raising worries about imminent rate rises, as higher oil prices often prompt rises in inflation.
Taxing pay can distort labour markets; consumption taxes can lead to inflation, prompting contractionary monetary policy.
A burst of inflation prompted the central bank to raise interest rates this week by three percentage points (to 25%).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com