San Francisco Fed President Mary Daly said the economy is slowing faster than she expected. And, tighter financial conditions, slower growth abroad, and rising uncertainty are also threatening to slow US growth. Though, she added that “there’s nothing on the radar that says we’re slipping into recession.”
Daly also said interest rates are now within a “hair’s breadth” of neutral. And she support a pause in rate hikes until there are signs of overheating. At the same time, she said Fed should align the balance sheet policy with the “patient” interest rate stance. “Those two are meant to work together and not at cross purposes,” she said.
