Daly Defends Fed's Steady Interest Rate Decision Amid Inflation Concerns

Fed's Mary Daly says holding interest rates steady at July policy meeting was correct decision.

San Francisco Federal Reserve Bank President Mary Daly stated her support for the central bank's decision to keep interest rates unchanged, citing the need for more data on inflation before making any further moves.

Daly emphasized that the Fed should be 'vigilant' in gathering information and prepared to take action if needed. She noted that supply-driven shocks may not have a lasting impact on inflation, but businesses now face limited pricing power and consumers are focused on oil prices when thinking about inflation.

The decision to hold interest rates steady was made by the Federal Open Market Committee at its July policy meeting, with three officials dissenting in favor of rate hikes due to high inflation levels. Daly is not a voting member of the FOMC but expressed her views on the matter.