San Francisco Fed President Daly: Further Rate Hikes Likely Needed, but No Need to Hurry
Mary C. Daly, president and CEO of the Federal Reserve Bank of San Francisco, delivered keynote remarks on November 12 at the Stanford Institute for Economic Policy Research (SIEPR) Fall Policy Forum at Stanford University. According to Reuters, Daly said the Federal Reserve will likely need to raise interest rates further to deal with elevated inflation, without suggesting it should be in a hurry about it.
Daly said her bias is that further tightening will be needed, adding that price pressures are spreading beyond energy and goods and into services, where inflation can be very sticky. She said the labor market is stable and growth is good, but the United States definitely has an inflation problem right now.
She also said rising bond yields are most welcome and that tighter financial conditions give policymakers a little more time to make really calibrated decisions, with the exact amount and timing of further tightening depending on many more quarters of data. Some Fed policymakers have signaled support for bigger or faster rate hikes beginning with the December 8-9 policy meeting; Daly did not join that group on Thursday.
The forum's theme was economic policy in the age of AI. Daly said AI is not having an outsized impact on inflation or the labor market now, but it could in the next few years, particularly if it pushes up productivity growth as she expects. The San Francisco Fed has posted the official event page and video of the remarks on its website.
Source: Federal Reserve Bank of San Francisco
Published by GSM · USA (original Chinese edition)
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