Did she not get the memo?
Daly speaking
- Decline in goods inflation has been an easy win, and not largely due to the Fed's rate hikes
- Just starting to see improvement in non-housing services inflation, need more of it
- We have more work to do, inflation is still high
- Fed policy is helping supply and demand get into a better balance
- In future could see the nominal neutral rate go to 2.5%-3%
- The new normal may be a little different, but probably won't be a gigantic reset
- I don't manage markets, I watch them for information
- If bond yields are tight, that could be the equivalent of another rate hike
- The risks to the economy are more balanced
- We need to get inflation down to fully balance the economy
Mary Daly is President and Chief Executive Officer of the Federal Reserve Bank of San Francisco.