Fed's Daly (2027 voter) says key problem the Fed has is inflation; not much evidence that AI is driving labour productivity up
ORIGINAL · NewsquawkFed's Daly (2027 voter) says key problem the Fed has is inflation; not much evidence that AI is driving labour productivity upRead originalHide original
Bias is that rates need to go up. Hard to say policy is restrictive enough, In all likelihood will need to raise rates. A myriad of things are pushing up inflation, which makes it concerning. Consumer spending surprisingly resilient. Looking to see how consumers behave during holiday season, given climbing prices. Looking at how the gap between consumer sentiment and behaviour gets closed. Just starting to hear that the consuimer may be running out of gas.
Daly sees further tightening as likely amid inflation concerns; earlier reporting said other policymakers were considering bigger or faster hikes at the December 8–9 meeting.
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Bias is that rates need to go up. Hard to say policy is restrictive enough, In all likelihood will need to raise rates. A myriad of things are pushing up inflation, which makes it concerning. Consumer spending surprisingly resilient. Looking to see how consumers behave during holiday season, given climbing prices. Looking at how the gap between consumer sentiment and behaviour gets closed. Just starting to hear that the consuimer may be running out of gas.
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