San Francisco Fed President Mary C. Daly gave an interview to CNBC television today in which she commented on the situation in the US:
- According to Daly, interest rates in the range of 4.75%-5.25% seem appropriate. Holding off future rate hike isn't an option for now;
- Daly will be 'rooting' for an effective slowdown in the economy and forecasts an unemployment rate of 4.5%-5%. She indicated that the Fed really wants to see a slowdown;
- Global conditions remain a drag on US economic growth. Daly signaled that even if and Fed holds rates, monetary policy is tightening as inflation falls;
- San Francisco Fed chief maintains September forecast of 5% as final interest rate level;
- Slower inflation and a stronger labor market are positive; the Fed needs even more such readings. Core CPI goods inflation and PPI data turned out to be positive, of course;
- Consumers are preparing for a slowing economy and are taking a step back, which is a good start though still holding strong
US500 chart, M5 interval. The key US index is testing a key short-term resistance level near 3970 points today. Source: xStation5
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