In an interview with CNBC, Mary Daly, a member of the US Federal Reserve Bank in San Francisco, made some tough statements about the bank’s monetary policy, and her statements addressed the following points:

  • I am not yet ready to say whether the US Federal Reserve has finished raising interest rates enough to bring inflation back to 2%.
  • It is still too early to say that the cycle of interest rate hikes is over.
  • The US Federal Reserve's monetary policy is in a very good position.
  • The US Federal Reserve is balancing the risks of excessive monetary tightening and too little tightening.
  • Monetary policy may be too tight now, that's what I think, but the US Federal Reserve can still ascertain whether current levels are tight enough.
  • The level of demand in the economy is so strong that there is certainty that the US Federal Reserve has finished raising interest rates.
  • It is too early to declare victory over inflation.
  • I don't know yet what the US Federal Reserve's next step will be.
  • The US Federal Reserve needs to review the latest two statements before making its next interest rate decision.
  • We should not be surprised by the volatility in the bond market amid the uncertain outlook.
  • Financial conditions are tighter than they used to be, and they remain tight, which helps rebalance the economy.