SF Fed President Daly Favors 50-Basis Point Rate Hike

Mary Daly, President of the San Francisco Federal Reserve, in an interview with Bloomberg News, expressed support for 50 basis point interest rate hikes, dismissing 75 basis points as too aggressive. She believes the economy is strong enough to handle these hikes, which are necessary to combat high inflation. Although she doesn't vote on FOMC decisions this year, her comments contribute to the Fed's strategy of transparent communication to avoid market surprises. Recent strong PPI and CPI data were discussed, with the Fed not expecting a significant slowdown as rate hikes only began in March.

What is Mary Daly's position on the 75 basis point rate hike?

• She fully supports it.

• She considers it too aggressive.

• She is undecided.

• She thinks it should be higher.

Why does Mary Daly believe the economy can handle a 50 basis point hike?

• Because of high unemployment.

• Because the economy is strong.

• Due to low inflation rates.

• Because the economy is weak.

What is the Federal Reserve's approach to market communication?

• To be as transparent as possible.

• To confuse the markets.

• To provide minimal information.

• To keep it secretive.

What recent economic data is mentioned in the discussion?

• PPI and CPI data.

• Stock market trends.

• Housing market statistics.

• Unemployment rates.

What is the expected impact of the rate hikes on the economy?

• Negative and harmful.

• No impact at all.

• Gradual and over time.

• Immediate and drastic.