Comments from Fed's Daly

Comments from Fed's Daly_
  • Inflation is all about whether it persists beyond Covid risk disruptions
  • Delta virus curtailed supply of labor and goods, creating ripple effects that will take months to resolve
  • I see a lot of uncertainty on inflation. Fed needs to be steady and vigilant
  • My model Outlook is that prices will moderate as we get through the pandemic
  • I also have to worry about the non-model Outlook; watching carefully to see if inflation expectations rise
  • Let's be patient enough to wait and watch on inflation
  • By summer of 2022 should get more clarity
  • In the meantime it could be a challenging time for consumers