Fed’s Daly: Range of 4.75%-5.25% is reasonable for policy rate end-point
San Francisco Fed President Mary Daly said on Wednesday that the Federal Reserve wants to see the economy slow as it attempts to get it “back to a sustainable pace of growth.” She added that consumers are “stepping back” and preparing for a slowdown, which should help bring down inflation.
Daly told CNBC that pausing interest rate hikes is “off the table” but that the Fed is focusing on the level of rates and the terminal rate. She estimated that the rate between 4.75% and 5.25% is “reasonable” and that, after determining the high, the Fed will have to decide how long to hold it. NN: this is settled business. The FED is not not NOT going to tapper. AND we are convinced they will raise interest rates to 5.5% AT LEAST>>>>> Fed Funds are trading at 3.8% with a target rates of 4%. Far from done we are in for a further 150 bases point increase in rates.