Fed's Daly: Inflation expectations matter more now than they used to

"Inflation has been below our target for a long time," San Francisco Fed President Daly noted and argued that inflation expectations mattered more now than they used to.

Key quotes (via Reuters)

• I do not believe Phillips Curve is dead.
• Fear of inflation should not overly drive policy concerns.
• We should be vigilant on upside, downside risks to inflation.
• Decline of employer-provided cost of living adjustments weakens link between wage, price growth.
• There are few signs that wage inflation is running away.
• Wage growth is slowly ratcheting up.
• Wage growth not moving in alarming manner.
• Wage growth is not having much effect on price inflation.
• While U.S. healthcare industry used to be a boost to inflation, now is a bit of a drag.
• It is important to not be complacent but also not to be overly worried about inflation.
• Phillips Curve remains a useful guide.