Fed’s Daly says officials may need to start crafting plan for rate increase

(Reuters) – As Federal Reserve officials always need to be prepared for various economic scenarios and it might be time to start crafting a plan for raising interest rates to address above target inflation, San Francisco Fed President Mary Daly said on Thursday.

Fed officials might need to start dialing down some of the extra accommodation they’re “giving to the economy and start crafting a plan to, at least, you know, think about raising the interest rate,” Daly said during a virtual event organized by the Peterson Institute for International Economics.

(Reporting by Jonnelle Marte)