President of the Federal Reserve Bank of San Francisco Daly:
- Two rate cuts this year would make sense if labor market stays solid and inflation falls, but range of possible risks is large
- Currently tilt toward a focus on inflation
- Need modestly or moderately restrictive policy to keep bringing down inflation
- Looking for signs inflation is continuing to fall, or if it’s rising or stays sticky
- Also looking for any weakening in job market, not seeing any
- Not facing policy tradeoffs now
- Fed is agile, policy well-positioned
- Businesses are not stalled in the face of uncertainty, though taking fewer risks
- Keeping Fed policy rate steady is an active decision
Daly was speaking in an interview with Reuters
after an appearance at the Oakland Rotary Club. Her earlier comments at the Club are here:
As with her Fed colleagues, there is no sign here from Daly of any imminent rate cut.
This article was written by Eamonn Sheridan at www.forexlive.com.
