Cleveland's Pianalto on inflation and expectations

In the speech 'Inflation, Inflation Expectations, and Monetary Policy' given on 8 September Sandra Pianalto of the Federal Reserve Bank of Cleveland said low and stable inflation expectations provided some comfort that a pause in August was not too risky despite recent higher inflation.

Anchoring inflation expectations is vital because if people begin to expect that higher prices are a fact of life, they will alter their investment patterns.

"All of the actions that people take to guard against

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