USA: Daly (Fed) supports a rate hike in March, calls for 1.25% by the end of 2022 | Photo credits: Istock
Jan 31 (Reuters) – The U.S. Federal Reserve is expected to start raising interest rates in March from currently near zero to 1.25% by the end of the year to curb the rise in inflation, but while continuing to support the economy, said Mary Daly, the president of the San Francisco branch of the institution, on Monday.
“If we reach this point, it is true that it is a tightening but that leaves enough margins for the system because the final objective is a rate of 2.5%, so we are supporting the economy. (..), but we are taking away some of the extraordinary instruments that we have provided,” she told Reuters.
“I think balance is the right thing to do given the uncertainty we face.” (Report Ann Saphir and Lindsay Dunsmuir; French version Claude Chendjou, edited by Tangi Salaün)