Mary Daly is head of the San Francisco Federal Reserve branch
- Want to bring inflation down, but not unnecessarily tip the economy into a downturn
- It's important to navigate through high inflation environment as carefully as we can
- We are resolute and committed to doing that
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Daly wants lower inflation but not a recession. Of course the Fed would prefer a soft landing to a hard one!
More:
- May come out of this episode with higher inflation, not the too-low inflation of prior to the pandemic
- Consensus in the US is that about half of excess inflation comes from excess demand
- Out tools are designed to bridle demand
- The hope is that as we bring demand down, supply issues also get resolved
- We might have to do a little more on demand because supply is sluggish to recover