Fed's Daly: Two more rate hikes this year a very reasonable projection
|Federal Reserve Bank of San Francisco President Mary Daly told Reuters on Friday that two more interest rate increases this year would be a "very reasonable projection."
Key takeaways
"Strongly supported June decision to stand pat on rates."
"Risks of under-tightening vs over-tightening are about balanced."
"Community contacts worried housing has hit bottom, and rents are reaccelerating."
"Banking contacts thoughtful about loan books, careful about balance sheets."
"Credit tightening so far is consistent with what would have been expected without March banking turmoil."
"We remain watchful on potential for extra tightening; it's another good reason to slow the rate-hike pace."
"Community, business contacts see inflation, labor shortages as big issues."
"Inflation expectations, and frequency and magnitude of price changes, are both on a downward trajectory."
"We want to work resolutely and carefully to restore price stability."
Market reaction
The US Dollar preserves its strength after these comments and the US Dollar Index was last seen rising 0.4% on the day at 102.80.
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