Fed’s Daly: Don’t feel as confident we can get ahead of it
Federal Reserve (Fed) governor and President of the Federal Reserve Bank of San Francisco spoke at an interview for the Wall Street Journal on Monday and said that she still thinks the Fed can bring inflation back to its 2% target.
Key takeaways
On the US labor market, i don’t feel as confident we can get ahead of it.
Inflation breakout is a lower risk given how tariff-driven cost increases have been more muted than anticipated earlier this year.
Still thinks the Fed can bring inflation back to its 2% target without an increase in unemployment.
Sees greater risks that the “low-hiring, low-firing” equilibrium ultimately would break in a negative direction.
Said the Fed shouldn’t hold off on cutting rates now out of fear it may need to reverse course later."
Source : Fxstreet.com
