Daly Says Fed Should Start Planning for Smaller Rate Hikes

Federal Reserve Bank of San Francisco President Mary Daly said that policymakers should start planning for a reduction in the size of interest-rate increases, though it’s not yet time to “step down” from large hikes.

“It should at least be something we’re considering at this point, but the data haven’t been cooperating,” Daly said Friday in a fireside chat hosted by the University of California Berkeley. At the November meeting, “we might find ourselves, and the markets have certainly priced this in, with another 75 basis-point increase, but I would really recommend people don’t take that away as, it’s 75 forever.”