Fed’s Daly: We have to work on price stability without overreacting
Mary Daly, President of the Federal Reserve (Fed) Bank of San Francisco, said on Bloomberg TV on Thursday that she doesn’t see evidence that longer-run inflation expectations are up. She also claimed that wage rises are consistent with the overall 2% inflation.
Key Quotes:
Policymaker speeches clarify how FOMC could respond
Forecast scenarios may aid communication of rate outlook.
Wage rises consistent with overall 2% inflation.
I don't see evidence that longer-run inflation expectations are up.
We have to work on price stability without overreacting.
Producers and sellers still hesitant to pass on higher prices.
If conflict ends, prior positive dynamics could return.
Much depends on how long Iran conflict lasts
Real FOMC signal is everyone agreed to hold rates.
Phrasing of statement less important than FOMC action
Public knows Fed is committed to price stability.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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