MNI BRIEF: Fed Doesn’t Need To Be Preemptive, Says Daly
MNI (WASHINGTON) - Federal Reserve officials can take their time considering further interest-rate cuts because inflation remaining above target requires ongoing attention, San Francisco President Mary Daly said Tuesday.
"We can take our time to look at what's coming in, both on the economy and any policy changes and make decisions. We don't need to be preemptive. We have plenty of power in our tools to take time to judge,” Daly told a panel discussion in San Francisco. "We are in a good position to wait-and-see."
Daly warned the central bank’s work is not done given that inflation remains firmly above the 2% target.
"We need to get inflation back to target. That’s where 100% of my energy is devoted. We haven’t finished the job and we haven’t given up that fight," said Daly. (See MNI INTERVIEW: Fed Rates Likely On Hold Through 2025-Croushore)