San Francisco Fed President Mary Daly urged patience to wait-and-see before acting on interest rates. She warned that if Fed hikes too soon, it will do very little on inflation, but “absolutely” reduce the pace of job growth. “That’s too much risk to take when we don’t have any indication that these are today persistent trends,” she said.
“I’m looking at the summer of 2022 is when we should – knock on wood, no more variants, no more delta surges – get some clarity,” she said.
On prices, she said, “as we get through the pandemic, we’ll see prices moderate and we’ll be back to that situation in which we had for more than a decade of forces pushing inflation down, not pushing inflation up.”
