San Francisco Federal Reserve (Fed) President Mary C. Daly spoke about the Fed’s policy outlook during an interview with Fox Business on Friday.
San Francisco Fed Mary C. Daly, president since 2018, will change from an alternate member’s voting seat to a full member’s at the Fed’s next meeting on January 31 and will directly vote on rate operations throughout the fiscal year.
Main advantages
- Fed’s Daly: early signs of labor market volatility could prompt policy adjustments.
- It is also important to monitor any increase in delinquency rates as an early indicator of economic weakness.
- The Fed needs to get inflation on a consistent trajectory to 2%, needs more evidence to be confident in rate adjustments.
- Markets are premature in thinking a rate cut is around the corner.
- It is too early to declare victory over inflation.
