Fed’s Daly: Current inflationary spike not that unusual
San Francisco Federal Reserve President Mary Daly stated on Wednesday that the current spike in the inflationary levels is not that unusual as the pandemic “structurally changed resilient demand towards goods.”
Daly said that she believes there will be a moderation in price pressures as demand returns to normal, thus allowing the supply chains to “catch up.” Additionally, she said that the labor market will grow stronger as the impacts of coronavirus lessen, discounting claims that it is tight.
On the topic of inflation expectations, Daly asserted that they are still well-anchored, adding that policy changes would take the same amount of time to fix the short-term problems as they would naturally.
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