MNI BRIEF: Fed Is Far From Meeting Its Price Goal, Daly Says

The Federal Reserve is far away from meeting its price stability goal, San Francisco Fed President Mary Daly said Friday, echoing Fed Chair Jerome Powell's remarks after the central bank raised rates half a percentage point earlier this week.

"We see a slowdown coming in a way that would be predicted by raising interest rates, and we still have a long way to go," she told the American Enterprise Institute. Daly said she boosted her inflation projection in the Fed's dot plots largely because of the tight labor market, and also said that while goods inflation is slowing, core services prices will be more stubborn. (See: MNI FED WATCH: Powell Promises Tighter Policy, Held For Longer)