Mary Daly is head of the San Francisco Federal Reserve branch:
- Comfortable with median Fed rate path projection of 4%-4.5% by year end, 4.5%-5% in 2023
- Actual rate path will depend on data
- After rate hikes would expect to hold rates steady for at least all of 2023
- Financial markets are digesting a lot of information, will take time to work themselves out
- Will be looking at how tight financial conditions are, and if tight enough to bring down inflation
- More than just a hope that unemployment will rise to the 4% range, but not to 6%
- Prepared to do more with rate hikes if inflation psychology starts to change, or don't get the recovery in global supply that we want to see
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Earlier comments from Daly:
Fed's Daly says we have gotten rates to neutral
Fed's Daly says a deep recession is not warranted or necessary
