{"id":1665145,"date":"2022-09-29T16:50:16","date_gmt":"2022-09-29T20:50:16","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665145"},"modified":"2022-09-29T16:51:04","modified_gmt":"2022-09-29T20:51:04","slug":"feds-daly-no-u-s-recession-needed-to-defeat-high-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/feds-daly-no-u-s-recession-needed-to-defeat-high-inflation\/","title":{"rendered":"Fed\u2019s Daly: no U.S. recession needed to defeat high inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffeds-daly-no-u-s-recession-needed-to-defeat-high-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1665145&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>(Reuters) \u2013     The Federal Reserve needs to slow the U.S. economy and take the heat out of the strong jobs market to bring down corrosively high inflation, San Francisco Fed chief Mary Daly said on Thursday, but it doesn\u2019t need to trigger a recession to do so. <\/p>\n<p>The Fed last week delivered a third-straight 75-basis-point interest rate increase, lifting its policy rate target range to 3%-3.25%, and signaled rates will likely rise to 4.4% by year end and to 4.6% in following months. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The U.S. central bank hasn\u2019t raised rates this sharply since the 1980s, which was also the last time inflation \u2013 now more than three times the Fed\u2019s 2% goal \u2013 ran higher than today. The Fed\u2019s rate hikes then plunged the economy into two recessions, including one that was particularly deep and painful, and analysts worry that this time won\u2019t be much different.<\/p>\n<p>\u201cNavigating the economy toward a more sustainable path necessitates higher interest rates and a downshift in the pace of economic activity and the labor market,\u201d Daly said in remarks prepared for delivery to Boise State University in Idaho, a view also expressed last week by Fed Chair Jerome Powell and several Fed policymakers since. \u201cBut for now, inducing a deep recession does not seem warranted by conditions, nor is it necessary to achieve our goals.\u201d <\/p>\n<p>That\u2019s because, she said, households and businesses haven\u2019t so far built an expectation for ever-higher-prices into their mindset, unlike 40 years ago when inflation ran high for a decade before the Fed took decisive action. <\/p>\n<p>Inflation this time around has been running above the Fed\u2019s target for about a year and a half. <\/p>\n<p>Still, Daly said, the Fed cannot take well-anchored inflation expectations for granted, warning that the longer inflation stays high, the more likely it will undermine Americans\u2019 confidence in the Fed\u2019s ability to bring it down. That could force the central bank to take the kind of dramatic action it did in the 1980s \u2014 jacking rates up well into the double digits, and plunging the economy into a tailspin.<\/p>\n<p>Risks to a soft landing for the economy are \u201cmyriad,\u201d Daly said, and include ongoing COVID battles, the war in Ukraine, a recession ahead for Europe, and central banks globally tightening policy. <\/p>\n<p>These risks, along with persistent supply chain issues, \u201crobust\u201d consumer spending, and a strong labor market marked by low 3.7% unemployment, \u201cnarrow the path for a smooth landing,\u201d she said. \u201cBut they do not close it.\u201d <\/p>\n<p>Daly devoted the bulk of her speech to laying out how damaging inflation is to households and businesses, and making the case that slowing the labor market now is better for Americans in the long run. <\/p>\n<p>The Fed will, she said, need to pay close attention to the economic data so it doesn\u2019t do either too much or too little. \u201cHistory tells us that the costs of errors are high,\u201d she said.<\/p>\n<p> (Reporting by Ann Saphir; Editing by Andrea Ricci)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/feds-daly-no-u-s\/attachment\/file-photo-san-francisco-federal-reserve-president-mary-daly-reacts\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S16M-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S16M-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) \u2013 The Federal Reserve needs to slow the U.S. economy and take the heat out of the strong jobs market to bring down corrosively high inflation, San Francisco Fed<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1665145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1665145"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1665145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1665145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1665145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1665145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}