Mary Daly from San Francisco Fed is concerned about inflation. Tuesday’s speech to the audience stated that high costs of living are putting a burden on society.

In a presentation by the Native American Finance Officers Association, she stated: “I get that inflation can be as damaging as not having a work.”

Daly explained, “That you should not have a job that doesn’t pay your bills. Or I don’t feel like I can save enough to get what I need.” Our goal is not to keep people up at night worrying about whether or not their dollar will still be worth it tomorrow.

Daly spoke to the Fed embarking on a policy tightening phaseThis will mean higher interest rates as well as a decrease in the number of bonds held by the central bank. Officials at the Fed hope that by reversing their ultra-easy policy during the pandemic, inflation will be closer to the 2% goal.

It consumer price indexThe meter measures the quantity of items in a basket. a 7.9% rate over the past 12 monthsThe highest since more than 40-years.

Although she did not specify the pace at which she expects the Fed to move, Daly stated that the Fed’s efforts would have an effect.

She said that it would lead to higher interest rates, making financing a car or business more challenging.

She said, “Most Americans have the confidence to know that this is not over forever. I’m willing to give that confidence to anyone who doesn’t already have it.

Daly indicated that she didn’t expect the economy to enter recession despite the fact that rates are higher.

She stated that the economy “could be teetering,” but she said “nothing to tip us into recession in this year.”