‘Wow,” Fed’s Daly says after killer jobs report, but it doesn’t alter Fed’s inflation-fighting plan


The president of the San Francisco Federal Reserve said the huge increase in new U.S. jobs in January was a “wow” report, but she stressed the central bank needs more information before it decides how much further to raise interest rates.

“What I am seeing is a strong labor market,” Mary Daly said in an interview on Fox Business.

Yet she also said it’s premature to draw conclusions. The Fed needs to see more data on the economy, she reiterated, before deciding its next step.

The economy created an estimated 517,000 new jobs in January, the government said Friday, an increase three times larger than Wall Street expected.

The stunningly strong report renewed talk that the Fed might raise its policy interest rate several more times as part of its fight to slay high inflation. A tight labor market has driven up wages over the past two years at the fastest pace in four decades.

The jobs report did show a further moderation in wages gains — something the Fed wants to see. The increase in hourly pay over the past year slowed to 4.4% in January from 4.8% in the prior month and a recent peak of 5.9%.

“My outlook for inflation is for it to come down,” Daly said. “Right now I see some positive signs, but it’s far too early to declare victory.”

The Fed on Wednesday raised its benchmark interest rate, the latest in a string of hikes, in an effort to slow the economy just enough to temper inflation without plunging the economy into recession.

Fed officials have made it clear, though, they will do what it takes to get inflation back down to pre-pandemic levels of 2% or so. The yearly rate of inflation stood at 6.5% in December, based on the consumer price index.

Higher interest rates tend to slow the economy by raising the cost of borrowing for credit cards, mortgages, new cars and other consumer and business loans.

Daly is not a voting member this year of the Fed’s panel that raises and lower interest rates.


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Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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