San Francisco Federal Reserve President Daly: The risks of employment and inflation in the United States are roughly balanced
San Francisco Federal Reserve President Mary Daly stated that the Federal Reserve's monetary policy is in a "good place," with risks to U.S. employment and inflation roughly balanced. She emphasized the need to adjust policies based on changing conditions and mentioned that the Federal Reserve is maintaining interest rates at 4.25%-4.5%, with differing forecasts for economic growth slowing, rising inflation, and increasing unemployment rates. Daly believes that action may be taken in the fall but did not comment on the economic or policy outlook
According to the Zhitong Finance APP, Mary Daly, President of the San Francisco Federal Reserve, stated that she believes the current monetary policy stance of the Federal Reserve is in a "good place," with risks to its employment and price stability goals roughly balanced.
In response to questions after a speech prepared for the Western Economic Association International's centennial meeting in San Francisco, Daly said, "We must adjust our policies based on changes in the environment while keeping these two goals in mind."
Last week, the Federal Reserve kept interest rates unchanged at 4.25%-4.5% and indicated that the impact of President Trump's tariffs on the economy remains highly uncertain. According to the latest forecasts, officials expect economic growth to slow, inflation to rise, and unemployment to increase, with differing views on the interest rate outlook.
Federal Reserve Governor Christopher Waller stated last Friday that the Federal Reserve could begin cutting rates as early as July. Daly indicated last Friday that she believes action is more likely to be taken in the fall.
In a speech on central bank communication on Sunday, the San Francisco Fed President did not comment on the economic or policy outlook. She stated that public guidance on interest rates can sometimes "come at a cost."
Daly emphasized that officials should "provide guidance on what we know, remain humble about what we do not know, and commit to responding to the world we are in, even if it differs from our expectations."
