SF Fed Says Mary Daly's Comments on Inflation Taken Out of Context
Let Americans eat cake!
Mary Daly, the San Francisco Fed president, faced criticism online after appearing to brush off the impact that soaring inflation has on the average American.
She took part in an interview with Reuters on Twitter and was asked about the impact that inflation has had on her personal life. ZeroHedge reported that Daly pulls in $422,900 per year.
She said she does not feel the pain of inflation anymore.
“I see prices rising but I have enough. I sometimes balk at the price of things, but I don't find myself in a space where I have to make tradeoffs because I have enough, and many Americans have enough," she said.
This week’s Trends Journal describes the hardship that millions Americans face due to inflation.
Daly seems to be doing fine.
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Reuters reported that she sold dozens of securities that she held in an account with her spouse that “were completed at the end of the year, as the Fed was writing the new rules but before they were finalized in February.”
Daly's forms show she sold 70 different securities at the end of 2021, nearly all of which were valued in the range of $1,001-$50,000. Her holdings in one corporate bond fund was given as between $50,001 and $250,000.
Daly has been wrong on inflation as recently as November.
She told CBS’s “Face the Nation” in October that soaring prices were due to supply bottlenecks and COVID-19 disruptions and said she did not see inflation as a “long-term phenomenon.”
In November she talked about the negative impact of raising interest rates: “Reacting in response to things that aren’t likely to last will move us farther from – not closer to – our goals…In the face of unprecedented uncertainty, the best policy is recognizing the need to wait. Although this can be hard, in the end, patience is the bravest action we can take.”
She made the comment after the annual inflation rate from a month prior hit 6.2 percent, which was the highest since 1990, Blockworks reported.
The San Francisco Fed told The Trends Journal that her comments were unfairly taken out of context and highlighted more of the conversation
“But … I recognize what it feels like when you don't have that situation when you live so close to the edge of your income. That raising prices actually forced real tradeoffs. You may not be able to go to the vacation you want you may end up you know instead camping or doing a staycation or eating your what you used to eat out to do you eat your hotel because you can't really afford getting there and then going out to dinner once you're at the hotel and I see all of that. So in my daily life, I see the rising prices, but I'm fine because I have a sufficient income to make those tradeoffs. For other people. That's not the case. And those are the people that this is so important for... It's just why I'm so resolute on getting inflation down. Those are the people we have to worry about.”
In the meantime, the New York Federal Reserve reported that household debt in the U.S. spiked to a new high, hitting above $16 trillion in the second quarter.
Enriching the Bankster Bandit’s credit card scam—whose average credit card interest rate is 19.13 percent for new offers and 15.1 percent for existing accounts, according to WalletHub—American’s credit card balances surged $46 billion in the last quarter... up 13 percent, and the largest spike in more than 20 years.
Four in 10 U.S. adults report they now find it “somewhat difficult” or “very difficult” to pay for normal household expenses, according to a U.S. Census Bureau survey taken in late June and early July.
That figure indicates that 90 million households are losing ground to inflation, 50 percent more than a year ago, the bureau noted, and the highest since it began asking the question in August 2020 as the COVID War intensified.