President Daly joined Host Boyd Matheson in studio and discussed in-district observations. “The data are more than just the headline numbers that you see printed in media outlets,” she emphasized.
“In a tight labor market, for example, a high school graduate might think it’s easier to find a job with solid wages without going to college. But in a slack labor market, an individual coming out of high school might think, ‘well, there are no jobs and the jobs that are available don’t have very high wages,’” she told Data Reporter Rina Torchinsky.
“There is a kind of exhaustion pulsing through the economy,” Daly told Economics Reporter Rachel Siegel. In conversations across her district — which spans California and eight other Western states — she said she routinely hears from people who are financially scraping due to the impact of inflation.
“The U.S. economy still faces the risk that supercore inflation remains stubborn even as the job market moderates,” Sylvain Leduc, Director of Research at the San Francisco Fed told MNI’s Greg Quinn.
“Rental data that the government uses to calculate the Consumer Price Index can be really sticky,” John Mondragon, Research Advisor at the San Francisco Fed tells Marketplace. “If you’re renting an apartment, and sign a typical one-year lease, your rent is going to be fixed for that year.”
The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year.
“The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient,” said Federal Reserve Chair Jerome H. Powell. “Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid.”
FedNow FAQ available here.
President Daly joined CNBC’s Squawk on the Street with Sara Eisen and Steven Liesman. “Right now, all my attention is on decidedly if we have to hike more and how much more we need to hike in order to get inflation down to 2%,” she said.
Zheng Liu, vice president and Director of the Center for Pacific Basin Studies at the San Francisco Fed, spoke with Faculti about how the rise in automation technology contributed to the rise of superstar firms over the past two decades. He explained the empirical link between automation technology and industry concentration, using a general equilibrium framewrk with heterogeneous firms and variable markups.
President Daly met with Axios’ editorial team and discussed a wide range of topics including economic resilience, lags in monetary policy, supervision at the Fed, and policy direction disagreements. “We have definitely come a long way. We’ve raised over 500 basis points in a short amount of time. We’re seeing the economy respond to that tightening,” she stressed.
San Francisco Fed President Mary C. Daly joined David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy, for an in-person fireside chat at the Brookings Institution, followed by an audience Q&A. The discussion generated extensive media coverage including Bloomberg, Reuters, CNN, and Yahoo Finance.
President Daly discussed her current economic outlook with Reuters’ Ann Saphir. “It is, in my judgment, prudent policy to slow the place of policy as you near the destination,” she emphasized.
San Francisco Fed President Mary C. Daly participated in a virtual discussion on monetary policy and inflation, followed by an audience Q&A at the International Economic Symposium, hosted by the National Association for Business Economics and Banque de France. The chat generated notable media coverage including Bloomberg, Financial Times, and Reuters.
Group media Q&A transcript following President Daly’s closing keynote, “Forward-Looking Policy in a Real-Time World,” at the Princeton Economic Policy Symposium on March 4, 2023.
“Right now, the most important thing to convey to listeners is that the direction for policy is for additional tightening and holding that restrictive stance for some time. But the ‘how we get there,’ the tactics, the meeting-by-meeting decisions really have to be data-dependent,” she stressed.
“The job of the Fed is to – as carefully and consciously as we can – navigate through this is so that there’s the least pain in the economy as possible while we restore price stability,” President Daly discussed with Host Darian Woods.
President Daly joined Nick Timiraos, The Wall Street Journal’s chief economics correspondent, to discuss her outlook for the economy, inflation and interest rates in 2023.
President Daly said that as she travels around her district — which spans nine western states and is the Fed system’s largest district both by geography and by the size of its economy — she hears that “people’s own situations feel different than the situations they fear are out there, or that they even see out there.”
Group media Q&A transcript following President Daly’s keynote, “Resolute and Mindful: The Path to Price Stability” at the Orange County Business Council on November 21, 2022.
“Pausing is off the table right now, it’s not even part of the discussion. Right now, the discussion is, rightly, in slowing the pace.”
“If I can do one thing for the public, I would say: stop thinking about pace and start thinking about level.”
“It is important to recognize that high inflation is what we would call a regressive tax. It is affecting the very people who are the most affected by the pandemic and the very people who suffer from inequality already.”
“There’s literally no doubt in my mind that we need to put a more restrictive stance of policy in the economy to further get demand and supply in balance,” she said.
“Of course, as a human, you care about the pain other countries are experiencing — but as a policymaker, I have a single tool,” Mary C. Daly, president of the Federal Reserve Bank of San Francisco, said in an interview on Tuesday. “It’s a blunt tool, even for the U.S. goals of full employment and price stability.”
“We’re data dependent. When the data shows what we need to see, then we will downshift,” Daly said Wednesday in an interview at Bloomberg headquarters in New York.
“The most important thing I want all your listeners to know is that the Fed is never on a preset course, where we’re going to do this no matter what – we always take incoming information.”
“Our No. 1 priority is to get inflation down. American consumers, businesses are suffering with high inflation, which is eroding their lives and livelihoods. That is why we’ve taken a very rapid pace of increases — to bridle the economy, get demand back in line with supply and give relief on the inflation front.”
“My job and the job of all the teams who work with me is we need to get out and talk to people because ultimately the policies we make are for everyone who lives in our communities.”
“We understand that people need jobs, but they also need prices not to rise so dramatically month by month.”
“The job market is strong. Inflation is too high. The Federal Reserve is committed to using its tools to bring the economy back to a sustainable path, where people don’t have to wake up every morning worrying about whether their real wages are eroding.”
“That indignity of inflation is what’s really cruel about inflation — it hurts people who have less, it hurts them more,” Daly said. “And it has that sense that you’re trying as hard as you can and you still can’t make it.”
“There’s good news on the month-to-month data that consumers and business are getting some relief, but inflation remains far too high and not near our price stability goal.”
“I start from the idea that 50 would be a reasonable thing to do in September because I believe I’m seeing evidence in my contact conversations, and in the observations of the world I see, that there are some bright spots for me.”
“We are still resolute and completely united on achieving price stability, which doesn’t mean 9.1% inflation — it means something closer to 2% inflation, so a long way to go.”
“Americans need to know they don’t have to worry about inflation when they wake up in the morning.”
“We have a strong a strong economy, but inflation is too high and that’s what the Federal Reserve is working on – getting inflation down without tripping up the economy and stalling it out.”