Fed’s Daly holds the line on cautious Fed approach amid price volatility

Federal Reserve (Fed) Bank of San Francisco President Mary C. Daly noted on Thursday that, despite overall progress on inflation and price stability, price pressures still remain a key issue for the Fed, making it difficult to move policy rates amid ongoing turmoil at the outer edges of economic data.

Key highlights

Still have some work to do on inflation.
We have solid growth, solid labor market.
What’s bothersome still is we haven’t achieved price stability.
Focus is on inflation; other things don’t distract us.
Policy, economy in a good place.
Rates have been restrictive for a significant number of years.
June’s Consumer Price Index (CPI) showed some of effect of tariffs.
Other parts of inflation are coming down.

More to come…