Mary C. Daly understands the median voter theorem

Ms. Daly…has shifted her tone particularly dramatically in recent weeks…

As recently as mid-November, she had argued that the Fed should be patient in removing its support, avoiding an overreaction to inflation that might prove temporary and risk unnecessarily slowing the recovery of the labor market. But incoming data have confirmed that employers are still struggling to hire even as consumer prices are rising at the fastest clip in nearly 40 years. Rising rents and tangled supply chains could continue to push up inflation. And she’s running into more people like that woman in Walgreens.

“My community members are telling me they’re worried about inflation,” Ms. Daly said last week.

Here is the NYT story, and note she is not the most right-leaning member of the FOMC.  This, in a nutshell, is why I think inflation will converge to a reasonable level, albeit with a possibly high degree of pain along the way.


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