freebingonodepositrequired| Federal Reserve Daly: Restricted interest rates need more time to take effect

Daley, chairman of the San Francisco Fed, said interest rates are currently dampening the economy, but it may take more time for inflation to return to the Fed's target. Daley said in a discussion on ThursdayFreebingonodepositrequired: "FreebingonodepositrequiredWe have taken restrictive measures, but it may take more time to reduce inflation. " This remark echoes the speech made by Federal Reserve Chairman Colin Powell on April 16.

Mr Daley said recent data showed a rebound in price pressures at the start of the year, highlighting why policymakers could not declare victory in the fight against inflation until they were confident that inflation was under control. "there is considerable uncertainty about inflation in the coming months and how we should respond," she said. "

The comments suggest that Fed policymakers are willing to keep interest rates unchanged until they are more confident that inflation will fall back sustainably towards the 2 per cent target. The Fed's preferred indicator of inflation, the core PCE price index of the United States in March, rose 2% from a year earlier.Freebingonodepositrequired.8%, higher than the 2% generally expected by economistsFreebingonodepositrequired.7%, the same as the previous value. Since July last year, the fed has kept interest rates at a 23-year high of 5.25% Mel 5.5%. Mr Powell hinted last week that a rate cut was still under discussion, but that the timing was uncertain.

Investors have cut their bets on Fed interest rate cuts this year as a series of higher-than-expected inflation data have been released, and the Fed is now expected to cut interest rates once or twice in 2024, in sharp contrast to expectations of as many as six cuts at the start of the year.

Daley also said she doesn't see the need for Fed policymakers to further ease price pressures by curbing the economy. If the job market starts to weaken, policymakers may consider cutting interest rates, she said, but it is normal for recent data to weaken. "it is too early to declare that the labour market is fragile or faltering," she said. "