Fed's Daly
SF Fed President Daly
  • US labor market is very strong
  • Inflation is unacceptably high
  • Still not at price stability, Fed has more work to do
  • Currently the expects Fed Funds to top out at around 5%
  • US has a shortage of housing
  • Will be watching the data
  • There are a lot of global headwind including China, war in Ukraine, the winter in Europe.
  • My view that rates could peak in the 4.75%-5.25% range, it is not set in stone