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Fed’s Daly ‘Comfortable’ Raising Rates Until Inflation Is Tamed

  • Ending accommodation is needed, but Fed must be open to data
  • Daly won’t forecast rate move after July; sees 2.5% neutral
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El-Erian: 'Stop and Go' Fed Risks Extending Inflation's Run

The Federal Reserve should tighten policy until inflation begins trending down toward its 2% goal, San Francisco Federal Reserve Bank President Mary Daly said, adding officials should remain data-dependent and temper rate increases once price growth moderates.

“I certainly am comfortable to do what it takes to get inflation trending down to the level we need it to be,” Daly said Wednesday in an interview on CNBC. “What the Fed needs to do -- and this is how I am thinking about the economy -- is remove the accommodation, but then be open to the data, be data-dependent.”