fed speech, 2006-07-06
But, for the most part, the evidence seems to suggest that to date the effects have been gradual and limited: a greater role for the direct and indirect effects of import prices; possibly some damping of unit labor costs, though less so for prices from this channel judging from high profit margins; and potentially a smaller effect of the domestic output gap and a greater effect of foreign output gaps, but here too the evidence is far from conclusive.
Sentiment: neutral
Topic: mp_inflation