San Francisco Fed President Mary Daly said, “if we didn’t have higher inflation readings, you might let the economy go a little bit more to see if we can get through COVID and have those individuals come back.”
However, “right now, we’re dealing with inflation that’s above our target and inconsistent in its current readings with our longer run views on price stability,” she added. “We have to deal with that.”
Fed might need to start dialing down some of the extra policy accommodation and “start crafting a plan to, at least, you know, think about raising the interest rate,” she said.
