Federal Reserve Bank President Mary Daly on inflation and the Fed’s job

Sep 8, 2023, 5:16 PM

How much retirement savings should I have...

Everything seems to be more expensive and more inflation numbers seem to come out every day. However, for the Fed, it's all about data. Photo: Adobe Stock

SALT LAKE CITY — For the typical American, everything seems to be more expensive. And new inflation numbers seem to come out every day. And while Americans are focused on their budgets, for the Federal Reserve, it’s all about data.

President and CEO of the Federal Reserve Bank of San Francisco Mary Daly watches inflation numbers closely. She was in Utah this week to learn more about Utah businesses and to engage with the state’s community and business leaders.

She told KSL NewsRadio’s Boyd Matheson the data she looks at is about more than just numbers printed in the Wall Street Journal or other publications.

“They’re really the numbers that people look at when they look at their revenue books or their profitability or how hard it is to hire people, how much their input prices are rising,” she said.

Fighting inflation and maintaining employment

The job of each of the 12 Federal Reserve banks is to serve a specific geographic district. It enacts the monetary policy designated by Congress with the goal of keeping prices stable and helping to keep unemployment low.

They work to set inflation rates, manage the money supply, and maintain the economy. The Federal Reserve Bank of San Francisco works with nine western states.

According to Daly, the Federal Reserve Bank of San Francisco has two main goals: keeping the inflation rate down and the U.S. employment rate up.

“One of the reasons we collect so much information … [is to] be able to shape policy that really tries to work for every American,” she said.

However, Daly said the Federal Reserve Bank isn’t fully meeting its goal of keeping inflation down.

“Inflation is coming down, thankfully, and people feel this directly in their pocketbooks and businesses feel it directly on their bottom line, but it’s still too high,” she said.

“We have a 2% inflation target. That’s because 2% is about the rate where nobody thinks about inflation when they make decisions … you don’t have to worry about it. And we’re not there yet.”

On the flip side, Daly said Americans looking to work can find jobs.

“People can find multiple jobs now,” she said.

It’s the employers that are struggling to hire.

“Businesses are still just one staff person calling in sick away from having to say ‘we can’t serve as many clients as we want,'” she said. “So, I still think the labor market is pretty tight, especially here in Utah.”

Inside Sources with Boyd Matheson can be heard on weekdays from 1 p.m. to 3 p.m.

Related: Paycheck to paycheck is the reality for 64% of Americans living in the west

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

The collection includes some of the "most sought-after and iconic vintages" ever produced at the La...

Oscar Holland

Billionaire to sell 25,000 bottles of wine worth $50M

Taiwanese billionaire Pierre Chen is auctioning off 25,000 bottles of wine from his vast collection.

3 hours ago

Actors, writers, and other union members join SAG-AFTRA and WGA strikers on a picket line in New Yo...

Jon Passantino

Striking actors and Hollywood studios to restart talks days after writers announce a new tentative labor contract

Striking actors and Hollywood studios will resume negotiations this week.

1 day ago

Backcountry skiers make use of the record-breaking snowpack to make some turns at Alta Ski Area, wh...

Don Brinkerhoff

UTA decreasing ski bus service due to driver shortage

UTA ski bus service this winter will be scaled back again because of a driver shortage. This is the second year in a row.

2 days ago

Image of the words 'happy retirement' scratched into sand on the beach. A Bankrate survey found hal...

Curt Gresseth

More than half of Americans feel “behind” on retirement savings

Have you saved enough for a comfortable retirement? An expert shares tips and insights into saving and paying down debt.

2 days ago

Carla Smith founded and operates Cornerstone Academy in Arlington, Texas. Mandatory Credit: Kaileya...

Tami Luhby and Sydney Topf, CNN

America’s child care problem is about to get a lot worse. Here’s why

Financial aid for child care costs that became available during the pandemic are set to expire this week leaving parents and daycares scrambling.

2 days ago

FILE - Demonstrators walk with signs during a rally outside the Paramount Pictures Studio in Los An...

Samantha Delouya

Writers Guild board votes to authorize members to go back to work

Leaders of the Writers Guild of America have unanimously voted to authorize its members to return to work following the tentative agreement reached Sunday.

3 days ago

Sponsored Articles

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

Human hand holding a protest banner stop vaping message over a crowded street background....

Prosperous Utah Communities

Utah’s Battle to Protect Youth from Vaping Epidemic Faces New Threat as Proposed Rule Threatens Progress

Utah's strict standards of nicotine levels in vaping products are at risk, increasing health hazards associated with use. Read more about how you can advocate for a better future for Utah's youth.

Aerial photo of Bear Lake shoreline with canopies and people camped out on the beach...

Visit Bear Lake

Last-Minute Summer Vacation Planning? Check Out Bear Lake!

Bear Lake is the perfect getaway if you are last-minute summer vacation planning. Enjoy activities with your whole family at this iconic lake.

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Federal Reserve Bank President Mary Daly on inflation and the Fed’s job