The Fed should be "vigilant to ⁠watch the information as it comes in, but be very prepared to take action" if needed, Daly said. When the interest rate setting Federal ⁠Open Market Committee met last week it voted in favor of holding its interest rate target steady at between 3.5% and 3.75% amid ongoing worries about the state of price pressures. Daly said there are "good reasons" to believe that the ‌supply-driven shocks that have hit the U.S. ​economy will not have ​a lasting impact on inflation. Daly said businesses now have limited pricing power and will struggle to pass on higher input costs. (Reporting by Michael S. Derby in New York; ​Editing by Christian Schmollinger and Lincoln Feast.)