- Inflation is too high
- Fed is actively focused on inflation and she is ready to raise rates in March
- It's is obvious we need to pull some of the accommodation out of the economy
- Financial markets have priced in both rate increases and bond taper
- Balance approach to rate hikes is key, sees March as appropriate time for an increase
Daly is a dove but I don't think that's the important takeaway here. In December, she signaled the more-hawkish shift from the FOMC that was later echoed by Powell. Later, he indicated that it was 'no coincidence' that others started talking about it before him. He was obviously referring to Daly, who had made a U-turn in two weeks.
So it's fair to see Daly as a mouthpiece for Powell and this as a signal that the core of Fed only wants to raise 25 bps in March.