Fed's Daly: Expects above-trend GDP growth next year and for inflation to moderate
Federal Reserve Bank of San Francisco President Mary Daly said on Friday that she expects above-trend GDP growth in 2022 and for inflation to moderate, according to Reuters citing Daly's comments in a WSJ interview.
Additional Takeaways:
“Expects unemployment rate to fall below 4% next year.”
“Is bullish on the US economy.”
“Keep an open mind about how many rate increases next year.”
“Expect to complete bond buys by March, prepared to respond to whatever economy brings us.”
“If the economy slows, may not need 2-3 rate hikes... if the economy speeds as expected, 2-3 rate hikes next year would be appropriate.”
“Even with 2-3 rate hikes, still a very accommodative policy.”
“As the economy gets stronger, the Fed will do less to support it.”
“Persistence in above-2% inflation is a positive outcome, helps fed achieve 2% inflation on average.”
“We understand inflation is problematic… we have to respond to that.”
“Very encouraged by the rise in the participation rate and decline in unemployment rate for disadvantaged groups.”
Author
Joel Frank
Independent Analyst
Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset
