MNI BRIEF: Inflation Dip ‘Far From A Victory’-Fed’s Daly

A softer-than-expected October CPI is modestly encouraging but it’s far too soon for the Fed to declare victory in the fight against inflation that remains far too high for policymakers' comfort, San Francisco Fed President Mary Daly said on Thursday.

“This is just one piece of positive information,” she said. “It’s far from a victory, 7.7% is very limited relief,” she told a virtual Q&A hosted by the European Economics and Financial Centre.

She said well-anchored long-run inflation expectations are comforting “but we can’t be complacent.” Bringing inflation back to the 2% target is mission number one, she said. “We’re going to continue on that job until that job is fully done.”

Richmond Fed President Thomas Barkin told MNI this week the central bank could slow the pace of rate hikes while ultimately pushing rates higher than previously anticipated.