Fed’s Daly sees more rate hikes as firms seek to pass on costs.
San Francisco Federal Reserve (Fed) President Mary C. Daly said on Friday that the US economy is good, but the "key problem" is inflation, adding that the “bias is that rates need to go up.”
Federal Reserve President Mary C. Daly stated on Friday that the US economy is performing well, but the primary issue is inflation. She emphasized that the "bias is that rates need to go up" and that it is likely they will need to raise interest rates. Daly acknowledged that it is difficult to determine if monetary policy is restrictive enough, and businesses are requesting to "pass on costs" to consumers.
The main challenge facing the economy is inflation, which is broad-based and has been influenced by various factors. Despite high productivity from artificial intelligence and other technologies, there is less evidence of a reduction in labor costs. Daly noted that the Federal Open Market Committee (FOMC) must remain transparent and accountable in their decision-making process.
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