San Francisco Fed President Daly said she fully supports last week’s decision to
leave rates unchanged. With inflation clearly above the 2% target, she said the
Fed needs more data before the September meeting to judge whether recent
inflation fading supply shocks or is becoming more persistent.
said the Fed should closely monitor incoming information and be prepared to act
if necessary. She expressed concern about public inflation expectations and
warned that if inflation momentum picks up the Fed may need to take forceful
steps to return price pressures to target. Daly is not currently an FOMC voter.
