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Fed’s Daly Calls for ‘Expeditious’ Rate Increases to End Year at Neutral Levels
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Federal Reserve Bank of San Francisco President Mary Daly said Wednesday that the U.S. central bank should move up its short-term target rate quickly to neutral levels and that she supports a big interest rate increase at the start of next month.
“I see an expeditious march to neutral by the end of the year as a prudent path,” with a rate that neither stimulates nor restrains the economy standing at around 2.5%, Ms. Daly said in a speech text. “We will continue to evaluate the data and the risks, but today I see little indication that the economy needs policy accommodation.”
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