Feds Daly: US economic momentum continues to surprise

<p>San Francisco Fed Pres. Daly is speaking:</p><ul><li>US economic momentum continues to surprise</li><li>There is more we need to do to raise rates</li><li>We need to be data dependent to make policy</li><li>Risks have become more balanced</li><li>Need for two more rate hikes this year to lower high inflation amidst a robust labor market.</li><li>These rate hikes are required to bring inflation back to the Fed's 2% goal.</li><li>The precise number of rate hikes may be adjusted based on economic data, and more or fewer hikes may be needed.</li><li>The risk of underacting continues to outweigh the risk of overacting, but these risks are becoming more balanced.</li><li>The Fed should increase rates more slowly than last year to evaluate the economy's response.</li><li>To assess economic progress, she looks at hard data like monthly job gains but also conducts surveys and personal data collection, including interviewing shoppers at large retailers.</li><li>Shoppers report having ample work, but their primary challenge is rapidly rising prices, which diminish their purchasing power.</li><li>Aims to avoid causing damage to the labor market with excessive rate increases, referencing a conversation with a young man who worries about rapidly rising prices and job security.</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.