Salem Radio Network News Saturday, October 1, 2022

Business

Fed’s Daly: 50 bps or 75 bps Sept rate hike ‘reasonable’

(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Thursday said that either a half- or 75-basis-point interest-rate hike in September would be a “reasonable” way to get short-term borrowing costs to a little over 3% by year end and a little higher than that in 2023.

Once rates are at that “restrictive” level and are slowing growth and inflation, the Fed should hold them there and not quickly cut them, Daly told CNN International.

The Fed is committed to getting inflation back down to its 2% target, she said, but should not commit an “unforced error” by doing too much policy tightening.

(Reporting by Ann Saphir and Howard Schneider; Editing by Mark Porter)

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