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Fed’s Daly Sees Half-Point September Hike; No Inflation Victory

  • Inflation is cruel, creates indignity, SF Fed leader says
  • Interest-rate increases need to be data-dependent, she says
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WATCH: Federal Reserve Bank of San Francisco President Mary Daly discusses the state of the US economy and its implications for monetary policy.Source: Bloomberg
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The cooler inflation reading for July is welcome news and may mean it’s appropriate for the Federal Reserve to slow its interest-rate increase to 50 basis points at its September meeting, but the fight against fast price growth is far from over, San Francisco Fed President Mary Daly said.

The July figures are “significant in that they are saying that we’re seeing some improvement but they’re not victory,” Daly said Thursday in an interview with Kathleen Hays on Bloomberg Television. “It really behooves us to stay data dependent and not call it.”