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 the Federal Reserve's approach to communication with the markets according to the interview?

What factors does Mary Daly consider when discussing the timing of interest rate changes?