Trump is about to take office...Fed dovish "Fight on inflation never ends"

With U.S. President-elect Trump's inauguration just around the corner, dovish (preferred monetary easing) figures within the U.S. central bank, the Federal Reserve, have warned that the fight against inflation is not over yet.

According to Bloomberg News and others, Mary Daly, president of the Federal Reserve Bank of San Francisco, made the remarks at the annual meeting of the National Economic Association (AEA).

Mr. Daly said inflation had largely subsided over the past two years, but was still "uncomfortably" above the Fed target of 2%.

He then called for thoughtful efforts to calm inflation to support full employment targets, believing that the trade-off between the two will grow sooner or later, although there has been no significant impact on the labor market in the process of calming prices so far.

"Obviously, our responsibility is not over," Fed Director Adriana Coogler said at the same event, stressing that "it has not reached 2% yet."

"No one is popping champagne (celebrating victory)," he said, adding, "At the same time, he wants unemployment to stay at the current level (which is 4.2% without a sharp rise)."

Richmond Fed Governor Thomas Barkin, who is known as a hawk within the Fed (preferred monetary tightening), also argued a day earlier that monetary policy should remain constrained until he gets greater confidence that inflation has returned to its 2% target.

"I think there's more upside risk to inflation than downside risk," Barkin said, explaining that the U.S. economy remains strong and there's a possibility of upward pressure on wages and prices.

The Financial Times interpreted Barkin's comments as a warning about possible inflation after Trump's return to power.