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Fed’s Daly: COVID-19 caused inflation, but Fed needs to fix it

Fed's Daly: COVID-19 caused inflation, but Fed needs to fix it

Mary Daly, president of the Federal Reserve of San Francisco, responds to City Hall of the Los Angeles World Affairs Council, Los Angeles, California, US, Oct. 15, 2019. REUTERS/Ann Saphir

Jan. 14 (Reuters) – Mary Daly, president of the San Francisco Federal Reserve Bank, said on Friday that COVID-19 is the main reason for over-inflation, and that the U.S. central bank should raise interest rates to reduce demand to to better align these with the tight supply.

The latest Omicron variant of COVID-19 only extends the period inflation persists because it means supply chains remain confused and workers are hesitant to return to the workforce, Daly said in an interview with the New York Times on Twitter. space. “We’re going to have to adjust the policy to make sure we achieve price stability,” she said. “We want to keep the economy in check a little bit.”

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Reporting by Ann Saphir, editing by Franklin Paul

Our standards: The Thomson Reuters Trust Principles.