China News Service , February 14, According to Reuters Chinese website on the 14th, Mary Daly, president of the Federal Reserve Bank of San Francisco, recently said that the "sudden and radical" rate hike of may have a counterproductive effect on the target of the Federal Reserve ( Fed /FED), indicating that she is not ready for a 0.5 percentage point rate hike next month.
reported that Daly said in an interview with CBS's Face The Nation program: "I looked at the data and I found it was obvious that we need to withdraw from some easing measures, but the historical experience of the Federal Reserve's policy shows that sudden and radical actions may actually have an adverse impact on the growth and price stability we are trying to achieve. "
reported mentioned that a week before Daly's speech, there was a rumor about the possible actions the Federal Reserve could take at the meeting next month. The Fed is expected to raise nearly zero interest rates since the COVID-19 pandemic next month, and Daly said she supports the move. But after the U.S. released unexpectedly strong inflation data, St. Louis Federal Reserve Bank President Brad called for at least one percentage point rate hike by the end of June.
report pointed out that although inflation is much higher than the Fed's flexible target of 2% per year, Daly does not seem ready to enter a fast rate hike mode immediately.
report quoted Daly as saying, "The Federal Reserve should raise the interest rate at the March 15-16 meeting, and then officials should "observe, weigh, be cautious about the situation seen, and then carry out the next rate hike when it seems most appropriate." It may be the next meeting, or it may be at a later meeting. ”(China Business Network APP)
