SF’s Fed Daly: The labor market is not driving inflation, it’s other shocks

One of the things that is true is that we've had many periods in our history with, you know, essentially if you're thinking in economics terms where the Philip curve is very flat and you just don't see the relationship between the labor market and price inflation and and it also sh kind of illustrates why the shocks have been a big component of overall inflation. You know, the tariff shock, the oil price shock, and now the AI investment boom shock. And in all of those, you have to ask what is the expectatio ...