Daly Defends Steady Interest Rates Amid Ongoing Inflation Concerns

Federal Reserve Bank of San Francisco President Mary Daly said she supports the central bank's decision to keep interest rates steady at its July policy meeting. She stated that the Fed needs more data on inflation, which is currently above its 2% target.

Daly emphasized that there are 'good reasons' to believe supply-driven shocks will not have a lasting impact on inflation. Businesses now have limited pricing power and consumers are focused on oil prices when thinking about inflation.

The Fed's Open Market Committee voted to hold interest rates steady at between 3.5% and 3.75%, amid ongoing worries about price pressures. Three officials dissented in favor of rate hikes due to high inflation levels.