Daly: Don’t Know If Rates Are Sufficiently Restrictive

San Francisco Fed’s Daly (’24 voter), in recent months at the center to dovish end of the FOMC spectrum, speaks to CNBC for her first public appearance since Oct 10. We leans on the hawkish side here with a need to see a further ebbing of inflation of questioning whether rates are sufficiently restrictive.

• She sees risks of over- or under-tightening as roughly balanced (bbg).
• Policy is significantly restrictive but unsure if policy is restrictive enough at current settings (rtrs)
• Fed needs to watch data to drive next rate decision (rtrs)
• Outlook for economy is positive, but unclear if inflation will ebb as needed. If it doesn’t ebb further Fed would likely have to hike again (rtrs)
• Financial conditions tighter than they were and are remaining tight, Treasury yields are still up from prior to September meeting (bbg). If financial conditions eased more Fed would need to take note. It’s hard to know why yields are rising as there are likely multiple reasons (rtrs)