Fed’s Daly: standing pat is right course for monetary policy now

Fed’s Daly: standing pat is right course for monetary policy now

© Reuters. FILE PHOTO: Mary Daly, President of the Federal Reserve Bank of San Francisco, poses after giving a speech on the U.S. economic outlook, in Idaho Falls, Idaho, U.S., November 12 2018. REUTERS/Ann Saphir

By Ann Saphir

(Reuters) – San Francisco Federal Reserve Bank President Mary Daly said on Friday that recent ‘eye-popping’ inflation readings are driven by supply chain breakdowns and will subside as COVID does, and the Fed’s decision not to raise rates in response is the right one.

“Just because we are standing pat, being patient, is not the same as being asleep,” Daly said. Raising rates now would not solve the global supply-chain issues but could start to bridle growth next year just as inflation pressures are receding and cost the economy both output and jobs, she said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest Category Posts