San Francisco Fed President Mary Daly said the central bank was right to hold rates steady at the July policy meeting.
Daly stated that current data provides the Fed with room to wait, supporting the decision not to change policy rates at the last meeting.
The San Francisco Fed President noted that price pressures have not completely disappeared recently, stating that the current level of monetary policy is restrictive enough to cool the economy.
The US Federal Reserve is attempting to bring inflation closer to the 2 percent target while avoiding an unnecessary break in the labor market.
Daly stated that if inflation accelerates again, tougher steps could be on the table. A tighter stance could be on the agenda at the September meeting if a permanent slowdown in inflation is not seen or if price pressures gain strength again.
If inflation accelerates again, tougher steps could be on the table.
