MNI BRIEF: Fed’s Daly Says ‘Not There Yet’ On Inflation

The Federal Reserve is making progress toward bringing inflation back to its 2% target but it’s too soon to claim victory, San Francisco Fed President Mary Daly said Thursday.

“We’re not at price stability yet, we have to be really confident we’re going to get there,” Daly said during a Q&A at the Dallas Fed. Officials must must also be watchful of a weakening labor market to ensure things don’t deteriorate unexpectedly, she said.

“We have the labor market coming back into balance. By historical experience we’re at this point of inflection in the labor market where additional slowing in the labor market could cause additional increases in the unemployment rate,” she said. (See MNI INTERVIEW: Fed Cuts Near, Hiring Weaker Than Appears-Wilcox)