Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Mary Daly. Photo: David Paul Morris/Bloomberg via Getty Images

San Francisco Fed President Mary Daly does not expect President Joe Biden's proposed $2 trillion infrastructure package to alter the central bank's path on interest rate increases or change its outlook for inflation, she tells Axios in an exclusive interview.

Why it matters: Many have worried the combination of trillions in spending on coronavirus relief, the Fed's ultra-loose monetary policy, and Biden's big stimulus plans for infrastructure, education and manufacturing will set the table for out-of-control price increases.

What she's saying: "I put it in there as a boost overall on growth, should those [bills] pass but I don’t put it in as a big pickup in inflation because I think of it as creating an additional supply effect — more workers coming into the labor force, better output, the roads and bridges and digital infrastructure improve," Daly says.

  • "This is really good for our economy. It allows us to grow faster."

Where it stands: Even as markets have pushed inflation expectation gauges to the highest in nearly 13 years and consumers are reporting the highest inflation expectations since 2014, Daly, a voter on the Fed's rate-setting committee this year, says she sees no need for the Fed to rush to raise interest rates.

  • "What I need to see myself is ... a period of time where inflation is at 2% and expected to be above 2% for a period of time that gives me confidence that we will absolutely in this next expansion average 2% over time."

For example, Daly points to supply chain issues in the shipping industry that have sent prices spiking higher in recent months as unlikely to be sustainable.

  • "I called my contacts and I asked 'Do you expect these things to persist?' And they say, 'No, they’ll unwind as soon as the supply chain bottlenecks are removed.'"
  • In contrast, Daly calls out the potential for improvement in the labor market that she expects would lead to improved wage growth that pushes prices higher consistently.

Keep it 💯: Daly strongly disputed the notion that the Fed may not have the tools to rein in inflation should it begin to rise out of control.

  • "That’s a possibility but not one borne out by the evidence," she says.
  • "I think it is an incorrect interpretation to think that we’ve lost our power across the distribution of interest rates."

Go deeper

Updated Mar 31, 2021 - Politics & Policy

Biden unveils sweeping American Jobs Plan

Photo illustration: Aïda Amer/Axios. Photo: Mandel Ngan/AFP via Getty Images

President Biden will ask Congress Wednesday to spend $2 trillion on an infrastructure plan over eight years, and pay for it by increasing taxes on corporations for nearly twice as long.

Driving the news: The package, which he will unveil during a speech in Pittsburgh, seeks to fulfill a range of promises he made on the campaign trail to fix the country’s crumbling infrastructure, slow the growing climate crisis and reduce economic inequality.

Super typhoon Surigae explodes to Cat. 5 intensity

Super Typhoon Surigae seen on satellite imagery Saturday morning east of the Philippines. (CIRA/RAMMB)

Super Typhoon Surigae surged in intensity from a Category 1 storm on Friday to a beastly Category 5 monster on Saturday, with maximum sustained winds estimated at 190 mph with higher gusts.

Why it matters: This storm — known as Typhoon Bising in the Philippines — is just the latest of many tropical cyclones to undergo a process known as rapid intensification, a feat that studies show is becoming more common due to climate change. It weakened slightly, to the equivalent of a strong Category 4 storm, on Sunday.

4 hours ago - World

Biden adviser warns "there will be consequences" for Russia if Navalny dies

The Biden administration warned the Russian government "that there will be consequences" if jailed Russian opposition leader Alexei Navalny dies, National Security Adviser Jake Sullivan told CNN on Sunday.

The big picture: Sullivan also defended President Biden for not mentioning Navalny in a Thursday speech about Russia or in a Tuesday call with Russian President Vladimir Putin, saying the White House aims to deal with the issue "privately and through diplomatic channels."