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San Francisco Federal Reserve Bank President Mary Daly said on Sunday that the US central bank will raise interest rates by half a percentage point in September to bring down red-hot inflation.
Daly appeared on CBS’ “Face the Nation” and said Americans are struggling with inflation at 9.1% — the highest since 1981 — but wage growth not growing fast enough.
“Americans are losing ground every day, so the focus should be on bringing down inflation,” Daley said.
The economic boost comes at a time when the US economy is on the brink of recession.
The Fed’s Mary Daly says she doesn’t feel inflation because she ‘has enough’, while others say ‘it doesn’t.’
Mary Daly, president of the Federal Reserve Bank of San Francisco, promised struggling Americans that the Fed is “far from done” in working to ease inflation. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
The Commerce Department reported last week that gross domestic product shrank 0.9% in the first three months of the year after falling 1.9% in the second quarter.
However, Daly does not see inflation creeping into the economy, which has shown signs of slowing, she said.
Bernie Sanders says the deflation bill will have ‘minimal impact’ on inflation.
Kennedy talks about raising the Fed’s interest rates again to fight inflation and recession.
“What I’m seeing is an imbalance between supply and demand. About 50%, in my staff’s estimation, of the hyperinflation we’re seeing is demand-related, and the other 50% is supply,” she said.
Delhi believes the Fed is on the verge of easing demand, and is already seeing signs of a slowdown in the housing market and investment.
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“So I’m seeing signs that the economy is slowing, that it’s going to take some time to do the interest rate adjustments that we’ve done,” Daley said. “We’re not done yet. That’s our promise to the American people.”
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