Fed’s Daly says jobs data gives room for tightening policy
San Francisco Federal Reserve (Fed) President Mary Daly said in an interview with CNBC on Friday that the job report was good news, that the economy is solid, and that it "gives latitude to get inflation job done.”
San Francisco Fed President Mary Daly stated in a CNBC interview on Friday that the recent jobs report was positive, indicating a solid economy. Daly believes that the current inflation can be controlled, giving the Federal Reserve room to tighten monetary policy further. She acknowledged that the recent rate holding at the last meeting was suitable, considering the uncertainty.
Daly also mentioned that an AI repricing could lead to a slight slowdown in demand growth, potentially bringing down inflation. The job market's stability provides the Fed with the flexibility to manage inflation effectively. Daly emphasized that the ongoing AI repricing trade has been orderly so far. She highlighted that businesses are cautiously optimistic about the economic outlook, despite the recent market volatility.
Daly concluded that the current rate environment, while slightly restrictive, is necessary to maintain a balanced economy.
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