San Francisco Fed President Mary Daly said yesterday that “I’m of the mind that we might need to, likely will need to, raise interest rates … in order to keep the economy in balance.” She clarified that “raising them a little bit is not the same as constraining the economy.”
But she also urged a data driven, measured approach. “If we act too aggressively to offset the high inflation that’s caused by the supply and demand imbalances, we won’t actually do very much to solve the supply chain problems, but we will absolutely bridal the economy in a way that will mean less job creation down the road,” she said.
