(Reuters) – Mary Daly, President of the San Francisco Federal Reserve said Wednesday that while it is unlikely that inflation will drop to 2% in this year’s fiscal year, she expects it to begin falling and reach its 2% target within five years.

After a speech delivered at the University of Nevada, Las Vegas, Daly stated that there are too many supply chains bottlenecks.

When asked about the New York Fed survey showing that households expected inflation to reach 3.7% within three years, she replied, “My view is that policy adjustments would be made so that in five years we’re more at 2% and not above 3 (%).”.”