Fed’s Mary Daly says high inflation ‘is as harmful as not having a job,’ pledges rate hikes ahead

San Francisco Fed President Mary Daly is worried about inflation, telling an audience Tuesday that the high cost of living is causing a heavy burden on society. “I understand that inflation is as harmful as not having a job,” she said during a session presented by the Native American Finance Officers Association. “That if you have a job and you can’t pay your bills, or I feel like I can’t save for what I need to do, then that’s keeping you up at night,” Daly said. “And our goal is to make sure that people don’t stay up worrying about whether their dollar today will be the same and worth a dollar tomorrow.” Daly spoke with the Fed embarking on a policy tightening phase that will include higher interest rates and a reduction in the amount of bonds the central bank is holding. Fed officials hope that reversing the ultra-easy policies they put into place during the pandemic will help get inflation closer to their 2% longer-run goal.
Source: CNBC – Bonds