Advertisement
Advertisement

Fed’s Daly backs half-percentage-point rate hikes at next meetings

By:
Reuters
Published: May 12, 2022, 20:37 UTC

(Reuters) - San Francisco Federal Reserve President Mary Daly on Thursday said she backs the plan to hike interest rates laid out by Fed Chair Jerome Powell and would like to see financial conditions tighten further to help bring inflation down.

San Francisco Federal Reserve Bank President Mary Daly poses in San Francisco

(Reuters) – San Francisco Federal Reserve President Mary Daly on Thursday said she backs the plan to hike interest rates laid out by Fed Chair Jerome Powell and would like to see financial conditions tighten further to help bring inflation down.

“Going up in 50-basis-point increments to me makes quite a bit of sense and there’s no reason right now that I see in the economy to pause on doing that in the next couple of meetings,” Daly told Bloomberg News, adding that she expects and wants financial conditions to tighten so as to bring supercharged demand in better line with constrained supply.

The Fed raised its benchmark overnight lending rate last week by half a percentage point, and Powell signaled the central bank would deliver at least two more rate hikes of the same size at its next two policy meetings. Since then, Fed officials have largely voiced public assent to that blueprint.

(Reporting by Ann Saphir; Editing by Paul Simao)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement