Oct 14 (Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Thursday said that inflation and employment had made enough progress for the U.S. central bank to begin dialing down its monthly bond buying, but is far from ready for interest rate hikes.
“At this point it is premature to start talking about rate increases,” Daly said in an interview on CNN International. Current high inflation stems from COVID-related supply chain shocks and will subside when infections do, she said. “If we would pull back our accommodation for the economy…I would wager a bet that it won’t solve the supply-chain bottlenecks,” she said. (Reporting by Ann Saphir, Editing by Franklin Paul)