Comments from the Richmond Fed President

  • It was very clear in early summer that covid was driving inflation
  • If it turns out inflation isn't transitory, there's no shame in saying that
  • It's a sensible time to talk about taper
  • Taper timeline gives us time to figure out what's happening with inflation
  • I am willing to be 'patient' on allowing time for Americans who left the labor force to come back to it

There is so much hysteria around inflation with the usual cast of characters hitting the panic button. But they've been hitting the panic button for 20 years so it's tough to take them seriously.

I sympathize with the people who have to communicate the path of rates because the inflation debate isn't an easy one. I can't say either side is going to win with any confidence, but the stakes are certainly rising.