San Francisco Fed President Mary Daly said yesterday she’s “quite comfortable” with the economic projections that interest rate will rise to 4-4.5% by the end of this year, and 4.5-5% next.
“It’s going to take restrictive policy for a duration of time to get clear and convincing evidence that inflation is getting back to 2% — so from my mind, that’s at least through next year,” she added.
“If inflation continues to print very high and we get no easing of inflation and only modest easing of labor markets, then that’s basically an economy that’s still got a lot of momentum, and inflation is still too high — we’re going to have to keep moving up because we are going to understand that the terminal rate isn’t as close as it would be,” she said.
