San Francisco Federal Reserve (Fed) President Mary Daly said she would be willing to accelerate the pace of the central bank’s gradual reduction in asset purchases if inflation remains high and job growth slows. keeps strong.
“If things continue to do what they have been doing, then I would fully support an accelerating pace of reduction in asset purchasesDaly said during an interview with Yahoo Finance published on Wednesday.
Daly claimed or that he was “openTo the idea, but you would like to see more economic reports on inflation and hiring and discuss the approach with your colleagues at the Fed before making a decision.
Various Fed officials have said in recent weeks that the central bank should consider withdrawing its support more quickly to be better equipped to deal with high inflation.
Minutes from the November meeting, to be released on Wednesday, could provide more details on the depth of inflation concern among monetary policymakers.
On rate hikes, Daly said he wanted to see how the economy performed in the first and second quarters of next year before making a decision. His outlook is that the Fed will raise rates by the end of 2022, but he noted that the central bank’s monetary policy would still be expansionary even after two cost-of-money hikes.
“I don’t want to be tied to a number“Said Daly, when asked if he would stick to a rate hike next year. “It wouldn’t surprise me at all if it’s one or two by the end of next year. “
Fed officials have said they would like to finish phasing out asset purchases before raising interest rates. They will meet again on December 14 and 15.
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