(Tiper Stock Exchange) – Mary Dalychairman of the San Francisco Federal Reserve, believes that i interest rates will be able to reach an inclusive range between 4.75% and 5.25%, compared to the current target range of 3.75%-4%. “I still think it’s a reasonable landing point for us before we stop, and the waiting part is really important. It’s a raise-to-hold strategy“he said during an interview with CNBC.
Daly said he sees a point where the FED will be able to assess the impact of its hikes before continuing with hikes, but that’s not the time. “A break is out of the question right now. It’s not even part of the discussion – he said – Right now, the discussion is rightly about slowing down the pace and focusing our attention on what level of interest rates will end up being sufficiently restrictive”.
The Federal Reserve official also said she sees an easing in basic goods inflation as “good news” and is encouraged by the overall slowdown in the economy. “Consumers are taking a step back, are changing the way they allocate spending. They’re dealing with high inflation, of course. They have to make compromises, put things right that they otherwise would get. But they are also preparing for a slower economy“, he said.
Daly said he expects higher rates to continue to impact the economy and bring inflation back in line. “As we raise them and hold them, over time as we hold monetary policy gets tighter as inflation comes down, so that’s another factor we’ll need to consider,” he said. He added that his goal is him reduce inflation” as efficiently and gently as possible“.