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
  • The risks to the economy are more balanced
  • We need to get inflation down to fully balance the economy
Federal Reserve daly

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