Comments from the SF Fed President

  • Must avoid pre-emtively tightening monetary policy
  • Recent rise in inflation compensation is 'encouraging' and in line with Fed goals
  • Runaway inflation risk is not imminent
  • Likely to be 'some time' before inflation sustainably back to 2%
  • Weak links between unemployment,w ages and prices likely to persist in the coming years

The Fed loves to talk about diversity and especially a diversity of ideas. Yet everyone is signing from exactly the same hymn book. It's not a coincidence that they're all saying the exact same thing.

They can't possibly be so confident in their forecasts for inflation to be so aligned.