San Francisco Federal Reserve President Mary Daly reacts at the Los Angeles World Affairs Council Town Hall, Los Angeles, on Oct. 15, 2019. (Ann Saphir/Reuters)

San Francisco Federal Reserve President Mary Daly on Wednesday said it’s unlikely inflation will fall to 2 percent this year, but she does expect it to start dropping and to be at the Fed’s 2 percent goal in five years.

“There’s just too many supply chain bottlenecks, we’re already through the first quarter, China’s got COVID we’ve got the war in Ukraine, so I don’t think we are going to get 2 this year, but I do think we are going to start coming down,” Daly said after a speech at the University of Nevada in Las Vegas.

Asked about a New York Fed survey that showed households expect inflation to be at 3.7 percent in three years’ time, she said, “My own view is that we would do policy adjustments so that five years from now we are more on 2 percent not on something north of 3 (percent).”

By Ann Saphir



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