Fed’s Daly: Not concerned about debate on rate hikes

San Francisco Fed President Mary Daly said on Friday that she is not concerned above “over cooking things” on rate hikes. Daly also noted that US consumers continue to spend and that the labour market is still robust.

However, Daly mentioned that “Inflation is too high” and that the Fed is working on getting down inflation without stalling the US economy. “Inflation has lasted longer than hoped, that’s because covid is still rampant, and the war”, Daly added

Daly pointed out that fuel price is a market-based price, based on supply and demand. “We are dialing back support to economy”, she noted adding that “July meeting will be a good discussion” and bringing down inflation will help Americans.

Daly also pointed out that the US monetary policymakers are not talking about raising rates to extreme highs, more like in the 3% range and that she does not expect mortgage rates to keep marching up as they have been. As for the market’s reaction, the US Dollar Index stays deep in negative territory near 108.10 following these comments.