Fed's Daly: Inflation numbers are higher and have lasted longer than expected
That's a big statement
Daly is a dove and this comment sounds like she's throwing in the towel on transitory inflation, or thinking about it. The doves are on the run right now, which is something you can see in breakevens.
She's still nowhere near talking about hiking though.
- The bulk of current inflation is related directly to covid
- If inflation is high next year we can raise the interest rate
- If we raise rates just on the forecast of high inflation, that could cost the economy and jobs