(Adds comments, background)
By Ann Saphir
Feb 3 (Reuters) - San Francisco Federal Reserve Bank
President Mary Daly on Friday said the 5.1% policy rate that
most Fed policymakers thought as of December would ultimately be
needed is a "good indicator" for where policy is going, but the
central bank could take rates even higher.
"I'm prepared to do more than that, if more is needed," Daly
told Fox Business Network.
She spoke hours after the U.S. Labor Department earlier on
Friday reported employers added more than a half million jobs in
January, a "wow" number, Daly said, but in line with recent data
showing labor market strength despite slowing in the overall
economy.
The Fed earlier this week raised its benchmark rate a
quarter of point, to 4.5% to 4.75%, and said it still expects
"ongoing increases" will be needed to get policy tight enough to
bring down high inflation.
Daly said she expects it will take longer than just this
year to win the war on high inflation. As of December, inflation
by the Fed's preferred gauge was 5%.
"We really will have to be in a restrictive stance of
policy until we truly understand and believe that inflation will
come squarely back down to our 2% target," she said, adding that
Fed policymakers are "resolute and united" in doing so.
"I think it's far too early to declare victory and even
think about peaking" in inflation, she said. "Right now the most
important thing to convey to listeners is that the direction of
policy is for additional tightening and in holding that
restrictive stance for some time."
(Reporting by Ann Saphir; Editing by Chris Reese and Jonathan
Oatis)
