MNI BRIEF: Fed Pulling Back Stimulus, Not Overdoing Hikes-Daly

San Francisco Federal Reserve President Mary Daly said Friday she's not worried that the Fed is overdoing rate increases because the FOMC is still pulling back on stimulus in a strong economy where inflation is too high.

“I’m not concerned about 'over-cooking' things," she said, repeating a term an interviewer used during a talk with Newsy. “We’re just dialing back support.” Firms around San Francisco already see a slowdown, a staff economist told MNI. (See: MNI INTERVIEW: Businesses Expect Worse Times Ahead - SF Fed)

“I don’t see recession high on my list of outcomes," she said, based on strong gains in retailing, jobs and packed restaurants. “We are in a post-Covid economy and people want to get out there and participate.” There are already signs inflation is moderating such as the University of Michigan survey, Daly said. She wants continued progress toward the end of this year taking CPI well down from the current 9.1% pace.