Fed’s Daly: an expected rise in inflation, probably temporary

July 13 (Reuters) – Federal Reserve Bank of San Francisco President Mary Daly said on Tuesday that the inflation “pop” was expected, noting that the biggest increases were in goods and services, driven by increasing post-pandemic demand and supply bottlenecks, and are expected to ease in the coming months.

“Several months of this doesn’t mean it’s not transient,” Daly told CNBC in an interview, adding that she was optimistic about growth for the fall and now is a good time to start. talking about reducing the Fed’s bond purchases. Still, she said, the Delta variant of COVID-19 poses risks, especially to global growth; politics is in a “big place” and it is premature to start talking about raising US interest rates, she said.

Reporting by Ann Saphir Editing by Chizu Nomiyama

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