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(Reuters) – San Francisco Federal Reserve Chair Mary Daly said on Wednesday she expects the U.S. central bank to raise interest rates at least four times this year, and probably more, in order to counter galloping inflation.
“There is broad agreement that inflation is too high and the policy rate too low,” she said at the World Affairs Council & Town Hall in Los Angeles, citing economic growth and the healthy job market.
While the geopolitical situation around Ukraine adds to the uncertainties, it does not disrupt the plans of the Fed, which intends to start raising rates next month, said Mary Daly.
“Raising rates at least four times – at least – is my preference, but more is likely to be needed” to rebalance demand and supply, unless consumer demand falls more than expected or problems in the supply chains are resolved faster than anticipated.
(Report Ann Saphir; French version Jean Terzian)
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