The head of the San Francisco Fed, Mary Daly, spoke about the direct threat to the American economy, referring to the inflation rally, and promised that the central bank will do what is necessary to deal with the price rally.
“Many are worried that the Fed could be too aggressive and could lead to a recession,” Daly said in an interview today. “I am personally concerned that if left unchecked, inflation will be a major obstacle and threat to the US economy and its expansion.”
The Fed, in this context, is “braking” with its interest rate hikes in order to moderate demand, he added.
“We are moving in this direction as soon as we can and we hope to see some improvement in the pockets of the citizens soon,” he said.
Finally, he noted that he expects to see the economy slow down, but not stop growing.