It's really anyones guess
Fed's Daly (voting member) says that it will take a year or two for inflation to get to 2% sustainably.
The comment is a bit different in that it puts a time period on the expectations. However, it is still anyone's guess on when inflation will be "sustainably" above 2%. How long is sustainably is another question.
She adds:
- There are only two real constraints on size of the Fed's Balance sheet 1. The fed can't be the only market maker in the market and the optics. We are not near any of those constraints.
The Fed meeting minutes will be released at the top of the hour.
