Fed’s Daly: Want to Step Down From 75 Bps Increments

The U.S. central bank should avoid putting the U.S. economy into an “unforced downturn” by overtightening, San Francisco Federal Reserve Bank President Mary Daly said on Friday, adding that the Fed is nearing a point where it should slow rate hikes.

“We don’t just keep going up at 75 basis-point increments” Daly said at the UC Berkeley’s Fisher Center for Real Estate & Urban Economics’ Policy Advisory Board meeting in Monterey, California. “I hear a lot of concern right now that we are going to go for broke. … We need to really think hard about how restrictive we need to be.”