Fed’s Daly: next step for Fed is forward guidance

FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses before public event,  in San Francisco
FILE PHOTO: San Francisco Federal Reserve Bank President Mary Daly poses before her first in-person public event since the start of the coronavirus disease (COVID-19) pandemic, at the Commonwealth Club of California in San Francisco, California, U.S. November 16, 2021. REUTERS/Ann Saphir

November 17, 2021

(Reuters) – San Francisco Federal Reserve Bank President Mary Daly on Tuesday said now that the Fed has begun to taper its asset purchases, the next step is to tweak the communications the Fed gives about the future path of rate hikes.

“It’s this forward guidance piece that I’m currently looking at myself, to say, do we need to think about the forward guidance we have so that we get that better aligned with the way that we are seeing the economy evolve,” Daly told reporters after an event at the Commonwealth Club in San Francisco. “That’s the next step in my judgment.”

(Reporting by Ann Saphir; Editing by Andrea Ricci and Chris Reese)