Fed's Daly sees no immediate need to raise rates amid inflation concerns

Federal Reserve Bank of San Francisco President Mary Daly today expressed skepticism about inflation declining sustainably to the 2% target.

The senior Fed official noted a lack of confidence in a consistent downward trend and did not observe any current evidence necessitating an increase in interest rates.

Moreover, Daly anticipated improvements in shelter inflation but cautioned that such improvements would not be rapid.

The remarks reflect ongoing deliberations within the Federal Reserve regarding the appropriate monetary policy response to inflationary pressures.

While the central bank aims for a 2% inflation rate as a sign of a healthy economy, the recent statement indicates that this goal has not yet been convincingly met.