Federal Reserve Bank of San Francisco President Mary Daly said on Wednesday that a "prudent path" for the Fed is "an expeditious march to neutral by the end of the year" with the federal funds rate of around 2.5%. "We will continue to evaluate the data and the risks, but today I see little indication that the economy needs policy accommodation," she explained.
"Moving purposefully to a more neutral stance that does not stimulate the economy is the top priority," Daly stated. She echoed the sentiment that inflation is "far too high" and noted the severe uncertainty caused by the Russia-Ukraine conflict and the COVID-19 pandemic. However, she assured the United States economy is unlikely to face recession due to the Fed's actions.
