On Wednesday, Mary Daly, CEO of the Federal Reserve Bank of San Francisco, noted that the U.S. central bank plans to cope with inflation by raising interest rates once again.
Speaking to Bloomberg TV, Mary Daly said that as long as the economy is functioning effectively, there will be no aimless increases in rates, the Fed is focused on the future. She also added that the Fed bases its decisions not so much on models, as on information from leading representatives of business. According to her, such information helps to determine the effectiveness of Fed policies and adjust them adequately, if necessary. According to today's estimates, the economy is functioning efficiently.
Daly emphasized that the Fed is aware of the problematic nature of inflation, which is why it tries to minimize inflation by raising interest rates. Thus, the Fed hopes to reduce demand for goods, services and labor, which could be sources of inflation.
The Fed will meet next month to ease lingering price pressures. A fourth rate hike, this time by 75 basis points, is expected then.