San Francisco Fed President and FOMC member Mary Daly said on Wednesday that wants to raise rates to around 2.5% given that inflation is the most important thingas reported by Reuters.
The real neutral rate is about 0.5%, which means the nominal rate is around 2.5%, Daly said, adding that some increase in the monetary policy rate above the neutral rate is likely to be required in 2023.
If inflation goes down, we might find that a little bit of tight policy is right, but if inflation goes up, we’ll have to get tighter.has pointed out.
We are willing to do whatever it takes to achieve price stabilityDaly continued, adding that those responsible for formulating monetary policies They project an advance in rate hikes.
Source: Fx Street
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