Tighter monetary policy is helping bring down the pace of inflation but not to a level where policymakers should feel too comfortable, San Francisco Federal Reserve President Mary Daly said Friday.
"All of that said, it is far too early to declare victory."
Daly compared the Fed's job to get policy to the "sufficiently restrictive" benchmark to someone riding a horse and trying to know whether the bridle has been pulled back far enough to stop.
"You don't know if the horse is feeling that bridle enough to be sufficiently restrictive to stop," she said.
"We're going to be very forward-looking here, and so that's why it's too early to declare victory.
Persons:
Mary Daly, Jerome Powell, Daly, it's
Organizations:
Federal Reserve Bank of San, San Francisco Federal, Federal, CNBC PRO
Locations:
Federal Reserve Bank of San Francisco, Idaho Falls , Idaho