Fed's Daly says a deep recession is not warranted or necessary

Mary Daly is head of the San Francisco Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term branch.

Headlines via Reuters from remarks prepared for delivery to Boise State University in Idaho.

• "Navigating the economy toward a more sustainable path necessitates higher interest rates and a downshift in the pace of economic activity and the labor market"
• "But for now, inducing a deep recession does not seem warranted by conditions, nor is it necessary to achieve our goals."
• Fed cannot take well-anchored inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term expectations for granted
• many risks to a soft landing for the economy - ongoing COVID battles, the war in Ukraine, a recession ahead for Europe, and central banks globally tightening policy
• persistent supply chain issues, "robust" consumer spending, and a strong labor market marked by low 3.7% unemployment, "narrow the path for a smooth landing ... but they do not close it
• Fed will need to pay close attention to the economic data so it doesn't do either too much or too little
• "History tells us that the costs of errors are high"

The 'deep' recession qualifier is a worry. The Fed has already made an error - this'll be confirmed when the data show the US economy has contracted (recession).