In an interview given to CNN on Thursday, the San Francisco Fed President Mary Dalyreiterated that it’s too early to declare victory over inflationas reported by Reuters.
Daly also noted that basic services inflation was still on the rise, adding that they would continue to raise rates to “straighten it out.” As for the September rate decision, Daly said a rise of 50 or 75 basis points would be appropriate.
“As we get closer to the meeting we will make a decision on the rate hike in September.”
“We need the rate to be a little above 3% next year“.
“We have to slow down the economy a little bit, slow down the rate of inflation.”
“The markets lack understanding, but consumers understand it, that rates will not go down right after they go up“.
“The raise-and-hold strategy pays off.”
“A humpback path for rates is not what’s on my mind.”
“The Fed is committed to getting the economy back on a sustainable path.”
“The Fed is committed to price stability, I think we have the tools to do that.”
“Global financial conditions are tightening, we have to take that into account.”
“The lower growth of the world economy will put downward pressure on the growth of the United States“.
“I don’t want to overdo the policy and find out that we’ve tightened the economy more than necessary.”
“I don’t want an unforced error, you have to balance doing enough with not doing too much.”
The Dollar Index rose slightly on these comments, gaining 0.12% on the day to settle at 106.78.
Source: Fx Street