(Finance) – The Federal Reserve could raise rates of interest of half a point percentage or by a quarter by a percentage point at the next meeting, according to the chairwoman of the San Francisco Federal Reserve, Mary Daly.
“I can give you arguments for both sidesDaly said in an interview with The Wall Street Journal. The Fed should try to bring inflation down “as gently as possible,” but it must also “absolutely” make sure high inflation isn’t incorporated, he explained.
According to Daly, the official rate – now between 4.25% and 4.50% – will eventually have to reach 5.00% – 5.25% and stay there to bring inflation back below the 2% target.