By Ann Saphir

(Reuters). SAN FRANCISCO – Mary Daly of the San Francisco Federal Reserve Bank stated Friday that inflation’s recent ‘eyepopping’ readings were caused by supply chain failures. She believes COVID will also subside, so the Fed’s decision against raising rates as a response was the correct one.

Daly stated that “just because we’re standing still, it doesn’t mean that you should be patient.” She stated that raising rates would not fix the global supply chain issues, but it could help to curb growth next year as inflation pressures recede and the economy loses both production and jobs.