February 29, 2024 17:44 GMT
Daly - Ready To Make Moves As Data Demands Us To Do
FED
In unscheduled remarks, SF Fed’s Daly (’24 voter) tells Bloomberg TV that if we cut rates too quickly there are risks that inflation can get stuck.
- “There is no imminent risk to the economy faltering.”
- “We are ready to make moves and adjust as the data demands us to do.”
- “It would be appropriate as inflation comes down to bring the nominal rate of interest down to make sure we’re not holding on even tighter". “We want to avoid holding on all the way to 2%, putting policy very tight and then cause an unnecessary downturn.”
- Bloomberg writes that Daly said she is looking for “a collage of evidence” that inflation is moving sustainably lower, including from published economic statistics and conversations with business contacts. “I see a lot of green shoots, as we like to say, but we’re not there yet”.
- Recall Daly on Feb 16 said she saw three rate cuts this year as reasonable.
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