Fed's Daly tells FT it's too early to declare victory over inflation
By Alexander Bueso
Date: Thursday 11 Aug 2022
(Sharecast News) - A top US central bank official argued in favour of a 50 basis point interest rate hike at the next policy meeting, instead of a 75bp move, even as she cautioned that much was still left to do.
In an interview with the Financial Times, the head of the Federal Reserve Bank of San Francisco, Mary Daly, reportedly said that a lot of uncertainty was still out there so acting "great confidence" and hiking rates by 75bp would not be "optimal".
According to Daly, services prices were still showing little sign of moderation so "this is why we don't want to declare victory on inflation coming down [...] We're not near done yet."
"We have a lot of work to do. I just don't want to do it so reactively that we find ourselves spoiling the labour market."
However, she reportedly also indicated she would be watching the next consumer price and non-farm payroll reports to better calibrate her decision.
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