(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Tuesday said that while there’s no reason to be discouraged about the bumpy and sometimes imperceptible progress toward 2% inflation, the U.S. central bank should keep short-term borrowing costs where they are until the progress is more visible.
“Policy needs to remain restrictive until … I see that we are really continuing to make progress on inflation,” she told a community banking conference hosted by the American Bankers Association in Phoenix, Arizona.
“We want to be, in my judgment, careful … before we make the next adjustment” to ensure there is enough downward pressure on inflation without short-changing the labor market.
(Reporting by Ann Saphir)
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