Mary Daly, the President of the Federal Reserve Bank of San Francisco, has stated in a Reuters interview that she considers two more interest rate hikes this year as a "very reasonable" projection. Daly's expectation aligns with the broader outlook of the U.S. central bank's policymaking committee. The timing of these rate hikes, according to Daly, is flexible and could be adjusted based on the economic performance.
The San Francisco Fed chief fully supports the Federal Reserve's current policy stance. She believes that the U.S. economy is in a good place and describes it as "resilient". Despite the ongoing uncertainties, she maintains that the economy is not in a bad place.
Even if inflation were to continue at a higher pace, Daly suggests that the Federal Reserve would not rush to increase interest rates further. The central bank's priority is to avoid a situation where the economy starts to slow down due to overly aggressive rate hikes.
Lastly, Daly emphasizes that the main goal of the Federal Reserve is to ensure the long-term health of the economy. She states that the central bank will adjust its strategies as necessary, demonstrating the Fed's commitment to flexibility and adaptability in its policy approach.
