San Francisco Federal Reserve Bank President Mary Daly told The Wall Street Journal on Monday that the United States economy will "continue slowing," adding that this was "necessary" in order to bring the inflation down to its target.
The policymaker explained that the country's overall inflation is registering a downward trend taking into account recent data, but emphasized that the Fed "shouldn't declare victory based on one month of data" warning that moving away from increases of interest rates could "worsen the economy."
Daly stated that her Fed colleagues will assess the incoming data on consumer prices in the country and will determine the rate of interest rate increase, with a 25 or 50 basis points rate hike being on the table at the next policy meeting.
