San Francisco Fed President Mary Daly told CBS on Sunday, “it is obvious that we need to pull some of the accommodation out of the economy”. However, “history tells us with Fed policy that abrupt and aggressive action can actually have a destabilizing effect on the very growth and price stability that we’re trying to achieve,” she warned.
“What I would favor is moving in March and then watching, measuring, being very careful about what we see ahead of us — and then taking the next interest rate increase when it seems the best place to do that. And that could be in the next meeting or it could be a meeting away,” Daly said.
