Fed's Daly: Still too soon to say rate hike cycle is over
Federal Reserve (Fed) Bank of San Francisco President Mary Daly spoke on Friday with CNBC that she is not ready to say yet whether the Fed is done raising its interest rate target to bring inflation back to 2%.
Key quotes
“The monetary policy is in a very good place.”
“Risk of over tighten and under tightening are balanced.”
“You can be significantly restrictive, which I think we are, and you can still not be sure if you’re sufficiently restrictive”
“There’s a lot of demand for certainty that we would say we’re done or we’re definitely hiking, but the truth is, we don’t know,”
“It is far too early to declare a victory.”
“Not ready to say what that next move will be.”
“Need to watch data to drive next rate decision.”
“Should not be surprised about the volatility in the bond market amid uncertain outlook.”
“Financial conditions are tighter than they were, they are remaining tight which is helping to bring balance back to the economy.”
Market reaction
The comments above have little to no impact on the US Dollar. The US Dollar Index (DXY) is trading lower on the day at 105.78, as of writing.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
