Fed’s Daly: Expects unemployment rise as price of controlling inflation

By Michael S. Derby

NEW YORK (Reuters) – Federal Reserve Bank of San Francisco President Mary Daly on Monday said it would be quite surprising for the central bank to get inflation under control without causing some amount of job loss.

“It would be a historical anomaly and quite a feat” to get inflation back to 2% and keep the unemployment rate, last at 3.4%, under the 4% mark, and it would be “completely reasonable” to expect the unemployment rate to go up given Fed actions aimed at lowering inflation, Daly said in a virtual appearance.

(Reporting by Michael S. Derby; Editing by Mark Porter)