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San Francisco Federal Reserve Chair Mary Daly said Wednesday that inflation is unlikely to fall to 2% this year, but she expects it to begin to decline and reach l the Fed’s 2% target in five years.

“There are just too many bottlenecks in the supply chain, we’ve already been through Q1, China has COVID, we have war in Ukraine, so I don’t think we’ll have 2 this year, but I think we’re going to start going down,” Daly said after a speech at the University of Nevada in Las Vegas.

Asked about a New York Fed survey that showed households expecting inflation to be 3.7% in three years, she said: “My view is that we would make policy adjustments so that in five years we will be more than 2% not on anything north of 3 (%).

(Reporting by Ann Saphir, editing by Franklin Paul)