- The only asset as a central banker to fighting inflation is credibility
- Without credibility, inflation expectations will become unanchored
- We are committed to getting inflation back down
- I don't think about spillovers to other countries when I set policy
- We need to front-load rate hikes
There's a good debate around Fed credibility, where it stands and how big of a role it will play in containing prices. The larger role though will be demographics, migration, automation and globalization. It's fanciful that central bankers pretend they can outweigh those dynamics.
