San Francisco Fed President Mary Daly commented at an event overnight, emphasizing that the US has not yet achieved price stability. While acknowledging recent positive inflation data, Daly noted, “We’re not there yet.”
Daly highlighted the delicate balancing act facing monetary policy. She called for patience, urging policymakers to “balance the costs of acting fast and being wrong.”
“It’s a risk to act too soon to normalize interest rates and then have inflation stuck below or above our target, and it’s a risk to hold on too long and make the labor market falter,” Daly elaborated.
