frederic mishkin, u.n.oper talked about -- you and peter hooper talked about a monetary policy, a phillips curve that was hibernating. is our traditional monetary policy hibernating and someday we will get back to it or are we moving on to some form of new paradigm? frederic: i think you're right that we are hibernating. the fit may well be the hide the curve. one is they have gone to an average inflation target think is a good thing, but have not defined it well enough. that is a problem. the other is they basically upset the phillips curve is not something they're worried about. on the other hand they will find out it is hibernating and there is an issue. i think the fed will end up doing what it has to do but it may be late. i think they will be mugged by reality. unfortunately they may be too complacent about the fact the economy is running very hot and inflation will be less temporary than they think it is. it is true there is a supply shock, which is temporary. the real reality is demand has jumped a

joining us now is frederic mishkin, former federal reserve board member welcome.d to have you back with us. >> good to be here >> let's talk a little bit about the delta variant and whether that gives the fed some cover to delay more explicit discussion of tapering and rate hikes and so forth does it, in your view, do that >> i think -- not internally they are going to be discussing this issue despite the delta variant because there's a tremendous amount of uncertainty about whether the delta variant will be a serious problem to the economy or not a serious problem in many states but that doesn't mean that it's going to have a big effect on the economy. so i do think that it does add an important wrinkle up to now the fed has been behind the curve but, in fact, if the delta variant becomes a serious problem in terms of how much spending is going on, then they're going to have been right. sometimes -- my mother used to say to me it's better to be lucky than good. that could be part of the scenario we could see going forward but we don't know. i think internally the