SF Fed Pres Daly:
on CNBC
Saying that we needed to 2 hikes was a way to keep optionality open
The good news on inflation this week is indeed good news
To early to say we can declare victory on inflation
Lags in monetary policy is 12 – 24 months
There is still cumulative effects of monetary tightening to work its way through the system
Thought that the banking crisis could be worth 1 to 2 tightening’s, but not seeing that impact
Am mindful that we still have an economy that has a lot of momentum
We are going to continue to work on rate hikes until we are sure that inflation is on the path to come back down toward 2%
There is a risk that we over-tighten and a risk that we under-tighten. That is why we are data dependent
Hard to say wage growth is going to lead inflation down
Was not aware of problems at Silicon Valley Bank