While she’s encouraged by the economic progress, San Francisco Federal Reserve President Mary Daly told CNBC on Tuesday that it’s still not time to change policy.
“We haven’t seen substantial further progress just yet. We’re still looking for substantial further progress,” Daly said during a live “Closing Bell” interview. “What we’ve seen is some really bright spots, some very encouraging news. It gives me hope, and I am bullish for the future. But it’s too early to say that the job is done.”
Fed officials have used “substantial further progress” as a benchmark for when they’ll start considering first reducing the pace of their monthly asset purchases then, ultimately, raising interest rates.
Several central bank officials have said over the past week they believe it will be time soon to start discussing a reduction in the minimum $120 billion of bonds the Fed is buying each month. Minutes from last month’s Federal Open Market Committee meeting also reflected the sentiment that discussions about tapering could occur in the months ahead.
