Lisa Cook, Speech: Thoughts on Inflation in a Supply-Constrained Economy

Inflation

“Inflation remains far too high, despite some encouraging signs lately, and is therefore of great concern. As a Fed policymaker, I am committed to bringing inflation back to our 2 percent goal.”

Inflation Expectations

“Since the onset of the pandemic, medians of many surveys of longer-run measures suggest that inflation expectations are still within their pre-pandemic ranges, despite having come up a little. This is consistent with overall PCE price increases declining to a 2 percent pace. Market-based measures of inflation compensation beyond the near term, such as those derived from Treasury Inflation-Protected Securities, or TIPS, tell a similar story … Any de-anchoring of expectations would be a major concern, as it could cause the high inflation that we have been experiencing to prove more persistent.”