San Francisco Federal Reserve Bank President Daly said on the 11th that he expected a rate hike of 50 basis points (bp, 1bp = 0.01%) at the Federal Open Market Committee (FOMC) meeting in September, but 75bp. I’m also open to it,” he said.
In an interview with Bloomberg Television, Daley said there will be another CPI and employment report before the FOMC’s next meeting on Sept. 20-21. It’s perfectly natural,” he said. The president will not have a vote at this year’s FOMC.
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– San Francisco Fed President Daly in an interview with Bloomberg Television Daybreak: Asia” (First-half of the full interview)
He said the slowdown in inflation data in July was welcome news, but said the battle against rapid inflation was far from over. In an interview, Daley said July’s numbers were “meaningful in that they show some improvement, but they’re not a win.”
The Federal Funds (FF) interest rate target was raised by 0.75 points to 2.25-2.5% at its July meeting. The FOMC’s median forecast, released in June, expected the policy rate to reach 3.4% this year.
Daly called the year-end forecast a “reasonable line.” That’s above the roughly 3% he sees as neutral to the economy and would be an area of tightening. The Fed is likely to continue raising rates well into 2023, as forecasts in June suggested.
As for financial markets, which have rallied over the past month, he said he may have misinterpreted the Fed’s rate hike path.
Original title:Fed’s Daly Sees Half-Point September Hike; No Inflation Victory
Fed’s Daly Sees Half-Point Hike in September, Open to 75 BPS (抜粋)
(We will add and update the governor’s remarks on inflation, etc.)
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