Fed’s Daly says ‘a little inflation’ is good after an era of low price pressures

“A little inflation would be good” for the U.S. after a long period of unusually low changes in the prices of goods and services, a top Federal Reserve official said Tuesday.

Mary Daly, president of the San Francisco Federal Reserve, said a sharp increase in inflation in recent months was inevitable as the economy fully reopened and consumers began spending lots of money again. Massive federal fiscal stimulus has also given household more cash to spend.

Yet Daly also contended inflation is likely to taper off once all the pent-up demand is met and the economy returns closer to normal. That’s a message the Fed’s top leaders have been stressing repeatedly this year.

Daly urged patience among investors.

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