Officials from the Federal Reserve have warned that the economic policies touted by US President-elect Donald Trump are likely to lead to a short term economic upswing - which will be followed by a period of volatility.

In the longer-term his policies are expected to create inflation and increase debt.

Its regional bank presidents have been publicly discussing Mr Trump's plans - these representatives generally avoid political discussions due to the high-level of attention that's paid to their comments.

Chicago Federal Reserve President Charles Evans said that given that the US is close to full employment, "The US economy could experience a burst of 4% growth for a year or two or more," under Mr Trump.

However, "Unless this is accompanied by sustainable structural improvement in labor and productivity growth, such GDP growth would ... ultimately lead to more restrictive financial conditions," he continued.

Atlanta Federal Reserve President Dennis Lockhart said that business leaders are expressing, "optimism around the prospect of fiscal stimulus, tax reduction, spending on infrastructure and some amount of deregulation."

Janet Yellen / PA

After the Fed's Open Market Committee's December meeting it said that interest rate hikes are expected to come at a faster pace in 2017 - under Mr Trump's leadership.

It raised its baseline interest rate in late 2016 - the move was only the second such hike in rates in almost a decade and the first since a similar adjustment in December 2015.

Donald Trump criticised both the Federal Reserve's policies and its chair, Janet Yellen on the campaign trail. Following his victory in December she said that she intended to serve her full term - and highlighted the need for the independence of the central bank to be maintained.