Fed’s Daly sees taper bar met by year end, no rate hike in 2022

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FILE PHOTO: San Francisco Federal Reserve Bank research chief Mary Daly stands near the podium before a speech at the CFA Society in San Francisco, California, US July 10. Businesshala/en safir/file photo
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(Businesshala) – San Francisco Federal Reserve Bank Chair Mary Daly said on Wednesday that she thinks the US central bank will begin to ease the pace of its monthly asset purchases by the end of the year, but she believes That interest rate hike is still a “long way off”. ” Distant.

“By the end of the year, if things continue as I expect them to with the economy, I expect that we will reach that ‘substantial further progress’ target, range and dial back by the end of this year.” It would be appropriate to start doing that,” she told reporters after a virtual conversation at UCLA.

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The Fed has set a different, higher bar for raising interest rates, with full employment and inflation reaching 2% and on track to stay above that level for some time. “If we get there in next year’s deadline it will be a tremendous victory for the economy,” she said, but “I don’t expect that to happen.”

He said about 6 million Americans are still excluded from the labor market. While inflation remains in place for longer than he expected and the upward pressure may not ease until next year, it is “appropriate” to wait and see how things play out.

Reporting by Ann Safir; Editing by Chizu Nomiyama

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