In an FT interview, San Francisco Fed President Mary Daly said , “there’s good news on the month-to-month data that consumers and business are getting some relief, but inflation remains far too high and not near our price stability goal,”
“This is why we don’t want to declare victory on inflation coming down,” she said. “We’re not near done yet.”
She reiterated her view that rise should rise to just under 3.5% by the end of the year. And her baseline for September FOMC meeting is a 50bps hike.
“There is a lot of uncertainty, so leaping ahead with great confidence that [a 0.75 percentage point rate rise] is what we need and being prescriptive would not be optimal policy,” she said.