• San Francisco Federal Reserve Bank President Mary Daly on Saturday sounded a clear warning on the inflationary threat, and signaled that the U.S. central bank may raise interest rates further, and keep them there longer, than has been expected.
• The acceleration of inflation in January “suggests that the disinflation momentum we need is far from certain,” Daly said in remarks prepared for delivery to the Princeton Economic Policy Symposium. “In order to put this episode of high inflation behind us, further policy tightening, maintained for a longer time, will likely be necessary.”