MNI BRIEF: Daly Sees No Urgency For The Fed To Cut Rates
San Francisco President says inflation progress has slowed from last year.
San Francisco Federal Reserve President Mary Daly said Friday she's in no hurry to lower borrowing costs, citing a strong labor market and the "bumpy ride" across recent inflation data, adding to the list of officials showing more hesitancy this week following stronger-than-expected price gains.
There is “no urgency to adjust the policy rate” she said at the start of an online talk, and said she's focused on a broad range of indicators rather than any single report. Inflation progress has slowed from last year and there is a lot of work to do before officials can be confident they are returning to price stability, Daly said. (See: MNI INTERVIEW: One Fed Cut Most Likely 2024 Outcome-Keister)
"I need to be fully confident that inflation is on track to come down to 2%, which is our definition of price stability, before we would consider a rate cut," she said. "What are we trying to accomplish? Bringing inflation back to 2% ... as gently as we can."