San Francisco Fed President Believes Interest Rates Are in a Good Place to Control Inflation

According to Yahoo News, Federal Reserve Bank of San Francisco President Mary Daly stated that interest rates are in a 'very good place' to control inflation, although she is not considering cuts and believes it is too soon to determine if hikes are finished. In an interview with Germany's Börsen-Zeitung newspaper, Daly's comments aligned with other policymakers advocating for maintaining current rates. Daly mentioned that it was 'premature' to claim victory in the fight against inflation, as it remains too high. However, she did not express a bias towards tightening 'excessively' after the aggressive steps the Fed has already taken. She emphasized the need for patience and vigilance, rather than adopting an insurance mentality to hedge against rising inflation. Traders predict that the Fed will maintain the target range for its benchmark interest rate at 5.25% to 5.5% during the December 12-13 meeting, with the next move likely being a decrease. Despite speculation that the US central bank will shift to easing policy next year due to concerns about the economy losing steam, Daly dismissed suggestions that growth was in immediate danger. She stated that inflation data is improving and the real economy has not stalled, with no recession currently on the horizon.