Federal Reserve (Fed) Bank of San Franciso President Mary Daly noted on Tuesday that prospects of further rate cuts this year remain murky in the face of policy uncertainty despite an overall positive lean to US economic factors.
Key highlights
The US economy is in a good place.
GDP growth and the labor market are solid.
The world is uncertain.
No reason to be discouraged about inflation progress, but taking longer than anyone wants.
We want to be careful before we make the next adjustment that there’s enough pressure on inflation. Also, I don’t want to shortchange the labor market.
We need more information. I don’t want to urgently get to an answer that we would regret.
We don’t know the scope, magnitude, or timing of the new administration’s policies.
Policy is in a very good place, we can easily move when needed.
We can’t preemptively make decisions based on policy guesses.
We have a safe and sound banking system.
