The president of the San Francisco Federal Reserve, Mary Daly, wants gradual interest rate hikes this year and a faster cut in the central bank’s balance sheet, compared to the last time he did so.
“We would rather adjust the interest rate gradually and cut the balance sheet earlier than in the previous cycle,” Daly told a news conference following the pandemic.
He added that he would not prefer the central bank’s balance sheet contraction to begin at the same time as the Fed’s first interest rate hike, but noted that it could see the balance sheet adjustment begin after the first-second interest rate hike.
According to the San Francisco Fed chairman, the US is not “on the brink of a wage-price spiral.”
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Source From: Capital
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