Fed’s Daly says we have more work to do, inflation is still high

Did she not get the memo?

Daly speaking

  • Decline in goods inflation has been an easy win, and not largely due
    to the Fed’s rate hikes
  • Just starting to see
    improvement in non-housing services inflation, need more of it
  • We have more work to
    do, inflation is still high
  • Fed policy is
    helping supply and demand get into a better balance
  • In future could see
    the nominal neutral rate go to 2.5%-3%
  • The new normal may
    be a little different, but probably won’t be a gigantic reset
  • I don’t manage markets, I watch them for information
  • If bond yields are tight, that could be the equivalent of another rate hike

Mary Daly is President and Chief Executive Officer of the Federal Reserve Bank of San Francisco.

This article was written by Eamonn Sheridan at www.forexlive.com. Source