Comments from Mary Daly of the SF Fed

  • Wage growth is slowly ratcheting up
  • Fear of inflation should not overly drive policy concerns
  • Important not to be complacent but also not to be overly worried about inflation
  • Wage growth is not having much of an effect on inflation
  • Wage growth is not moving in an alarming manner

I think it's fair to say that fear of inflation has certainly infected pockets of the Fed, ECB and BOE over the past decade and forced some things that prevented them from getting inflation to target.