San Francisco Federal Reserve Chair Mary Daly said on Thursday she felt it was time to slow down the U.S. central bank’s rate hikes, but that she would rather err on the side of raising the benchmark rate. a little too much to go wrong with not raising it high enough.
The Fed must not, she said, repeat the mistakes of the 1970s by ending monetary policy too early and allowing higher inflation expectations to be built into the economy.
Data published on Thursday that showed a slowdown in consumer inflation is “good news” but “one month is not a win,” she said.
Daly added that the Fed will be “resolute” to contain the jump in prices to the central bank’s 2% target.
Still, she said, it’s important to be “conscious” and “thoughtful” about rising borrowing costs so as to reduce the chance of unnecessarily pushing the US economy into a deep recession.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
