Fed's Daly speaking

Fed's Daly
  • Patience is the boldest, best action for the Fed.
  • Better to wait for greater clarity then raise rates preemptively
  • Fed is well-positioned to act if inflation begins to look more persistent
  • Hard to unwind preemptive action that turns out to be wrong
  • Not now on hike rates does not mean not ever
  • Over next several quarters, will watch to see if inflation eases workers come back
  • As we get a clearer signal, we will be ready to act
  • Good reasons to think high inflation won't last beyond pandemic
  • Too early to count out the millions of people on sidelines of labor force
  • Little evidence of now of wage price spiral
  • Raising rates would not fix high inflation now, but would cure demand and slow recovery.