Fed’s Daly More Worried About Inflation Persistence

Daly's shift matters less as a policy signal than as evidence that the "look through supply shocks" consensus inside the Fed is eroding — a stance that has been the main argument against reacting to energy- and trade-driven price pressure. If other officials follow, the debate moves from whether supply shocks are temporary to how much demand-side tightening is warranted against problems rate hikes cannot fix. The open question is whether this stays a personal reassessment or becomes a broader Committee tilt.