San Francisco Fed President Mary Daly told CNBC the latest US jobs report was good news and described the economy as solid, saying the labour market provides latitude to complete the task of bringing inflation down. She also said wage growth is not booming, while adding she would like greater confidence on the inflation outlook. Daly said services inflation is not easing in the way policymakers would expect.
Outlook On Economy And Inflation
San Francisco Fed President Mary Daly told CNBC the latest US jobs report was good news and described the economy as solid, saying the labour market provides latitude to complete the task of bringing inflation down. She also said wage growth is not booming, while adding she would like greater confidence on the inflation outlook. Daly said services inflation is not easing in the way policymakers would expect.
Policy And Market Perspectives
On policy, Daly said the Fed will have to tighten further, while arguing it was appropriate to hold rates unchanged at the last meeting given uncertainty. She said rates could be slightly restrictive to neutral. Separately, she pointed to an orderly AI repricing trade so far and said that, if AI repricing is signalling a slowing in demand growth, that demand growth could come down a little. She added that businesses are cautiously optimistic about the outlook and referred to a rebalancing following what she called painful volatility.
