Federal Reserve Bank of San Francisco President Mary Daly expressed concerns about inflation uncertainty in the next few months, noting a healthy labor market with high inflation. Daly highlighted signals of consumers being selective but no decline in input prices. She emphasized the importance of a stable labor market and inflation target of 2%, stating the Fed's policy is restrictive but may take time to lower inflation. Daly mentioned the potential need for policy adjustments if the labor market weakens fundamentally.
Fed's Daly: Still seeing disinflation underway; no doubt things are slower now than last year. https://t.co/osHFqq3se6
Fed's Daly: I am still seeing supply improvements; there is no evidence the Fed has to really push the economy down. https://t.co/kjziKB6lk4
Federal Reserve Bank of San Francisco President Mary Daly said interest rates are currently restraining the economy, but it may take “more time” to return inflation to their goal https://t.co/gxim0LDjh7
DALY: INFLATION EXPECTATIONS ARE WELL ANCHORED, AND CONSUMERS ARE BECOMING PRICE SENSITIVE
DALY: STILL SEEING "DISINFLATION" UNDERWAY; NO DOUBT THINGS ARE SLOWER NOW THAN LAST YEAR
FED'S DALY: INFLATION EXPECTATIONS ARE WELL ANCHORED, AND CONSUMERS ARE BECOMING PRICE SENSITIVE.
FED'S DALY: I AM STILL SEEING SUPPLY IMPROVEMENTS; THERE IS NO EVIDENCE THE FED HAS TO REALLY PUSH THE ECONOMY DOWN.
FED'S DALY: STILL SEEING DISINFLATION UNDERWAY; NO DOUBT THINGS ARE SLOWER NOW THAN LAST YEAR.
FED'S DALY: IT IS FAR TOO EARLY TO DECLARE LABOR MARKET FRAGILE AND FALTERING.
SAN FRANCISCO FED PRESIDENT DALY - "There is a difference between the labor market getting 'softer' and getting 'weak'. If it was getting 'weak', that could be a reason to change policy rate." - "2% is our inflation target, and the Fed is not going to 'change the goalpost'…
Fed's Daly Says Rate Cuts Depend On Uncertain Inflation Path https://t.co/MEFjZOQbxQ
DALY: IF LABOR MARKET WERE TO FALTER IN A "FUNDAMENTAL WAY" POLICY ACTION WOULD BE NEEDED
FED'S DALY: IF THE LABOR MARKET FALTERS, I WOULD THINK ABOUT ADJUSTING THE RATE.
DALY: DO SEE THE LABOR MARKET COOLING; BUT THAT IS WHAT SHOULD BE HAPPENING
FED'S DALY: A SOFTENING LABOR MARKET WOULD BE GETTING BACK TO NORMAL GROWTH.
DALY: A SOFTENING LABOR MARKET WOULD BE GETTING BACK TO NORMAL GROWTH
DALY: A DIFFERENCE IN THE LABOR MARKET BEING SOFTER AND "GETTING WEAK"; IF IT WAS GETTING WEAK THAT COULD BE A REASON TO CHANGE POLICY RATE
DALY: FED CANNOT TAKE POLITICS AND POLITICAL CHANGES INTO THE POLICY CONVERSATION; JOB IS HARD ENOUGH
DALY: 2% IS THE INFLATION TARGET AND THE FED IS NOT GOING TO "CHANGE THE GOALPOST" WHILE IT IS TRYING TO REACH IT
FED'S DALY: 2% IS THE INFLATION TARGET AND THE FED IS NOT GOING TO CHANGE THE GOALPOST WHILE IT IS TRYING TO REACH IT.
FED'S DALY: OTHER ISSUES FOR FRAMEWORK WILL LIKELY BE THE NEUTRAL LEVEL OF RATES, PROBABILITY OF HITTING ZERO LOWER BOUND ON RATES, AND PATH OF POTENTIAL OUTPUT.
DALY: FED CANNOT COUNT ON PRODUCTIVITY TO "SAVE" THE U.S. FROM INFLATION
DALY: FED POLICY IS RESTRICTIVE BUT IT MAY STILL TAKE TIME TO BRING INFLATION DOWN
FED'S DALY: FED POLICY IS RESTRICTIVE BUT IT MAY STILL TAKE TIME TO BRING INFLATION DOWN.
FED'S DALY: RISKS TO EMPLOYMENT AND INFLATION GOALS ARE BALANCED.
FED'S DALY: I STILL SEE A REALLY HEALTHY LABOR MARKET AND INFLATION THAT IS TOO HIGH.
FED'S DALY: RIGHT NOW NO EVIDENCE THAT THE LABOR MARKET IS APPROACHING A WORRISOME POSITION.
🇺🇸 FED'S DALY: THERE IS CONSIDERABLE UNCERTAINTY ABOUT INFLATION IN NEXT 3 MONTHS
FED'S DALY: THE BALANCE SHEET OFFERS NO SIGNAL ABOUT MONETARY POLICY.
FED'S DALY: I AM GETTING DIFFERENT SIGNALS FROM FIRMS WHO SAY CONSUMERS SEEM TO BE GETTING CHOOSY BUT INPUT PRICES ARE NOT YET DECLINING.
FED'S DALY: THERE IS CONSIDERABLE UNCERTAINTY ABOUT INFLATION IN NEXT 3 MONTHS.
DALY: A RANGE OF SCENARIOS THE FED IS FACING RIGHT NOW
FED'S DALY: THE LAST THREE MONTHS HAS LEFT CONSIDERABLE UNCERTAINTY ABOUT THE NEXT FEW MONTHS OF INFLATION
FED'S DALY: THE LAST THREE MONTHS HAS LEFT CONSIDERABLE UNCERTAINTY ABOUT THE NEXT FEW MONTHS OF INFLATION.
FED'S DALY: INFLATION IS GOING TO BE A BUMPY RIDE.
"With inflation in the most recent quarter moving sideways, it raises questions about how restrictive policy really is." --@NeelKashkari, @MinneapolisFed https://t.co/EknJdkmDFv via @catarinasaraiva @economics