Fed's Daly: Debate between 50 bps-75 bps not a primary consideration
|President and CEO of the Federal Reserve Bank of San Francisco, Mary C. Daly has stated that there is no reason to alter the course for 50 bps at the next two meetings, adding that the debate between 50 bps-75 bps is not a primary consideration. She also said she still wants to reach a neutral rate of 2.5% by end of the year.
“Is it 50, is it 25, is it 75? Those are things that I’ll deliberate with my colleagues, but my own starting point is we don’t want to go so quickly or so abruptly that we surprise Americans” already dealing with 40-year-high inflation, Daly told Yahoo Finance earlier on Thursday.
“I’m watching over this year to see how much our move to neutral restrains the economy, along with the repair of supply chains and the fiscal rolloff,” all of which should contribute to easing inflation, she said.
Meanwhile, the US dollar has climbed to a fresh 20-year high on Thursday as concerns persisted that central bank actions to drive down high inflation would crimp global economic growth, boosting the currency's safe-haven appeal.
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