Fed’s Daly: ‘open question’ how far rates need to go above 2.5%
2022.04.21 19:11
FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses at the bank’s headquarters in San Francisco, California, U.S., July 16, 2019. REUTERS/Ann Saphir/File Photo
(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Thursday said she supports raising the Fed’s target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further they’ll need to rise will depend on what happens with inflation and labor markets.
The Fed will “likely” need to raise rates by a half a percentage point at a couple of Fed meetings this year, Daly told Yahoo Finance, though she added that the exact speed and even the possibility of a 75 basis point hike will be a group decision with fellow policymakers. As to what rates should do after this year, she said, “that’s an open question and one I don’t want to get prematurely to before we see the data.”
