LOS ANGELES, Oct 15 (Reuters) - The Federal Reserve, in a “new normal” of fighting inflation from below, is keen to get inflation back up to 2% so expectations do not drift down over time as they have in Japan, San Francisco Fed President Mary Daly said on Tuesday.
Part of the reason inflation is low is due to global downward pressures, Daly told the Los Angeles World Affairs Council & Town Hall. But part of the reason is also because the labor market has more room to grow than the Fed had previously thought, she said. (Reporting by Ann Saphir; Editing by Paul Simao and Chris Reese)
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