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HomeEconomyDaly expects Fed to hike rates above 5%, but unclear how far

Daly expects Fed to hike rates above 5%, but unclear how far

(Bloomberg) — San Francisco Fed President Mary Daly said she expects the central bank to raise rates above 5% before pausing, but the final level is unclear and will depend on upcoming inflation announcements Data.

As for the next meeting of the Federal Reserve at the end of the month, the central bank will either raise interest rates for the second consecutive 31 basis points or cut interest rates. Daly accepted the Wall Street Journal on Monday In a live broadcast interview, he said that the interest rate will be raised by 25 basis points.

Daly says he won’t be voting on rates this year. She insisted on keeping it high for a while to bring inflation down to the central bank’s 2% target.

Daly said last month that she thinks rates will remain captive for longer than the market expects, which has already priced in rate cuts for this year. She said keeping the federal funds rate at peak months was a “reasonable starting point.”

Fed officials to meet in Jan 31 and Feb 1, expect another 31 basis point rate hike or further The pace slowed to 25 percent, although traders saw the latter as more likely. A report on Friday showed hiring in the U.S. labor market remained strong in December, while wage growth slowed.

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