Federal Reserve Bank of San Francisco PresidentMary Dalysaid on Saturday that despite significant progress in lowering price pressures over the past two years, inflation remains uncomfortably above the 2% target, per Bloomberg. Key quotes Inflation remains above our target. Labor market equilibrium maintained, opposes further deceleration. Notes increased tradeoff between inflation and job market. Policy rules serve as a beginning point, setting the tone for discussion.
When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve holds eight policy meetings a year, where the Federal Open Market Committee assesses economic conditions and makes monetary policy decisions.