Skip to main content

Fed will ‘absolutely’ raise interest rates in September with focus to lower inflation: SF Fed pres Mary Daly

San Francisco Fed President Mary Daly said the central bank will raise interest rates in September and promised it was "far from done" in helping to bring down inflation.

Federal Reserve Bank of San Francisco President Mary Daly on Sunday said the U.S. central bank will "absolutely" raise interest rates half a percent in September to try to bring down red-hot inflation.

Daly appeared on CBS’ "Face the Nation," saying Americans are struggling as inflation hits 9.1% – the highest since 1981 – while wage growth is not rising at as fast a rate.

"Americans are losing ground every day, so the focus has to be on bringing inflation down," Daly said.

The potential rate hike comes as the U.S. economy is teetering on the brink of a recession. 

FED'S MARY DALY SAYS SHE DOESN'T FEEL INFLATION BECAUSE ‘I HAVE ENOUGH,’ ADDS ‘THAT NOT THE CASE’ FOR OTHERS

The Commerce Department reported last week that the GDP shrank by 0.9% in the second quarter after tumbling 1.9% over the year’s first three months.

However, Daly said that she doesn’t see that inflation is embedded in the economy, which she says has shown signs of cooling.

BERNIE SANDERS SAYS INFLATION REDUCTION ACT WILL HAVE ‘MINIMAL IMPACT’ ON INFLATION

"What I see is supply and demand are just unbalanced. About 50%, by my own staff’s estimates, of the excess inflation we see is related to demand, the other 50% to supply," she said.

Daly said that she believes the Fed is in a great position to bring demand down, and that they already see signs of cooling forming in the housing market and in investments.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

"So I do see signs the economy is cooling, it’s just going to take some time for the interest rate adjustments we’ve made to work their way through," Daly said. "And we’re far from done yet, that’s our promise to the American people."

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.