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San Francisco Federal Reserve President Mary Daly: Monetary Policy in Uncertain Times

Commonwealth Club of California Podcast

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Preemptive Action Is Not Free

Many have argued that we should act peremptively to prevent a vicious wage price spiral. But so far, and this is the important part, there is no evidence, very little evidence, that this is happening. Despite the large jumps in measured inflation, inflation expectations,. remain relatively stable and well anchored around the feds price stability goal of average inflation of two%. So this suggests that households and businesses sitting out there watching the economy evolve, expect inflation to moderate at least somewhat as the global economy emerges from the pendemic.

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