Fed's Daly sees rates rising to 4.75-5.25 per cent before holding
By Alexander Bueso
Date: Wednesday 16 Nov 2022
(Sharecast News) - A top US central bank official said that official short-term interest rates would need to rise by at least one more percentage point - possibly more - before policymakers could pause to take stock of the situation.
In remarks to broadcaster CNBC, the head of the Federal Reserve Bank of San Francisco, Mary Daly, said her most up to date estimate of the level to which the Fed funds needed to rise before the Fed would hold was probably 4.75-5.25%.
The Federal Open Market Committee hiked the target range for the Fed funds rate by 75 basis points to 3.75-4.0% on 1-2 November and market pricing out to mid-2023 was only a touch below Daly's views.
"Pausing is off the table right now. It's not even part of the discussion," she reportedly added.
"Right now, the discussion is rightly around slowing the pace and [...] focusing our attention really on what is the level of interest rates that will end up being sufficiently restrictive."
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