San Francisco Fed President Mary Daly acknowledged that while inflation appears to be slowing, it remains far too elevated. In an interview held at the Brookings Institution in Washington, D.C., Daly indicated the need for further measures to counteract inflationary pressures.
She affirmed, “I think it’s a very reasonable projection to say a couple of more rate hikes will be necessary.”
Daly reflected on the resilience of the U.S. economy, which has shown surprising strength despite ongoing economic challenges. The robust data, according to Daly, signal a clear need for intervention: “We need to raise rates to bridle that economy more.”
“With labor market still strong, inflation high, risks of doing too little are outweighing risks of doing too much,” she added.
Nevertheless, “It’s appropriate to slow the pace of rate hikes.”
