Fed’s Daly: We will need to raise interest rates to keep economy in balance

Federal Reserve Bank of San Francisco President and FOMC member Mary Daly said on Thursday that policymakers will need to raise interest rates to keep the economy in balance. “Even if we do a couple of interest rate increases, monetary policy will still be accommodative”, she added.

Additional Remarks:

“Inflation is a regressive tax… I take it really seriously.”

“Inflation has been higher than I’m comfortable with for a long time.”

“If we act too aggressively to offset high inflation, we won’t actually do much to solve supply chain problems.”

“We’ve come to a point where it is clear inflation is rising in sectors not affected directly by Covid.”

“We need to be vigilant on data and take a measured approach to policy.”

Traders are still digesting the FOMC Minutes document as well as Daly’s latest remarks.