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