1.4 C
New York
Monday, December 5, 2022

Latest Posts

Fed is determined to solve the “problematic” inflation, according to Mary Daly

- Advertisement -

The central bank of the United States would intervene if the markets stopped working properly, said the president of the San Francisco Federal Reserve, Mary Daly, who added that the current situation does not justify such a measure and that the Fed maintains its plan to curb inflation. with more rate hikes.

We definitely don’t raise rates until something breaks; we’re actually looking to the future”, Daly told Bloomberg TV in an interview on Wednesday, adding that policymakers do not just rely on models, but collect information from business and community leaders to shape their policies.

- Advertisement -

They are constantly calibrating through this reliance on data the risks” of not doing enough to slow down the economy, or of doing too much.

Right now, he said, the economy is doing well and the markets are working.

We always have a responsibility to be the lender of last resort, and if there was a market dislocation we would be prepared to use it, but that’s not what I’m seeing right now“, he pointed.

- Advertisement -

See also:

Fed’s Mary Daly Proposes Raising Interest Rates Further to Control ‘Corrosive’ Inflation

What the Fed does see is that “inflation is problematic, and we are committed to restoring price stability” raising rates further.

The Fed is expected to raise interest rates by 75 basis points for the fourth time in a row when it meets early next month, tightening monetary policy more aggressively than it has since the 1980s to ease pressures from investors. prices that have remained higher for longer than expected.

Global stock markets have swung as investors try to gauge when the Fed’s rate hikes might end, and policymakers like Daly have stuck to their message that tightening will only end when inflation subsides.

With information from Reuters

Source: Gestion

- Advertisement -
spot_imgspot_imgspot_img

Latest Posts

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.