Fed's Daly acknowledges that waiting too long could see the Fed lag on rates
|Federal Reserve (Fed) Bank of San Francisco President Mary Daly hit newswires on Thursday, following up earlier comments from fellow Fed policymaker Christopher Waller, but taking a more measured approach to discussing the potential for near-term Fed rate cuts.
Key highlights
- The economy is in a good place, growth and jobs are solid, inflation is easing.
- The Fed has the ability to restore price stability gently, given the state of the economy.
- Monetary policy is still restrictive.
- Labor market is cooling and growth is moderating, but data is not getting meaningfully weaker.
- Daly doesn't expect very persistent inflation impact from tariffs.
- Daly says it's time to think about adjusting the interest rate.
- Daly see two cuts as a likely outcome for the Fed.
- There's a large amount of uncertainty around policy outlook.
- The cut rates, Fed needs a continuation of current data trends.
- Labor market supply and demand is roughly in balance.
- Economic fundamentals support a move toward lower rates at some point.
- Real labor market weakening could drive rate cut, but inflation issues could lean the other way.
- Fed should always have an open mind about changing rates.
- Thinking about rate cuts during the fall.
- The latest unemployment claims data were positive.
- Immigration curbs not yet resulting in wage increases.
- Businesses and households are in a good position.
- Seeing some relief that tariffs aren't as high as they were expected to be.
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