San Francisco Fed President Mary Daly said, “about 50% of the elevated inflation we’re seeing is from demand factors, 50% from supply factors.”
“50 bps hike would be a reasonable thing to do in September but if we see inflation roaring ahead undauntedly then perhaps 75 bps hike would be more appropriate,” she added.
Also, she does not believe that Fed has reached the threshold for interest rate to be considered restrictive As for tightening, having rate at 3.4% by the end end is a “reasonable place” to get to.
