Daly debates whether US is reliving 90s boom or 70s inflation
San Francisco Fed chief says getting answer right will help in formulating best policy response
The president of the Federal Reserve Bank of San Francisco has said the best path for US monetary policy will depend on whether the economy’s current situation is closer to that of the 1970s or the 1990s.
In an essay published on November 10, Mary Daly said that during the 1970s, households and businesses had been worried about higher inflation and reacted strongly to price changes. If the US was seeing a rerun of this period, then “letting go of the policy reins too soon could end in a policy
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