Updated
Updated · investinglive.com · Jul 2
Fed's Daly Sees 110,000-Job Economy Holding Up as Slightly Restrictive Policy Presses Inflation
Updated
Updated · investinglive.com · Jul 2

Fed's Daly Sees 110,000-Job Economy Holding Up as Slightly Restrictive Policy Presses Inflation

3 articles · Updated · investinglive.com · Jul 2

Summary

  • Mary Daly said the U.S. economy still shows no loss of resilience, with strong investment growth and a labor market she described as stabilized despite inflation remaining above target.
  • Tariffs and an oil-price shock have lifted inflation, she said, though falling oil prices could bring some relief while current policy stays slightly restrictive.
  • Daly declined to signal the next rate move, saying the Fed faces two live scenarios: inflation keeps easing, or officials must keep fighting price pressures if growth holds up.
  • A 110,000 June nonfarm payrolls consensus due later Thursday could quickly reshape that assessment, underscoring the Fed's data-dependent stance.

Insights

With hiring plummeting far below forecasts, is the Fed's view of a resilient U.S. economy still credible?
As the Fed curtails its guidance, are we entering a new era of market volatility and economic policy guesswork?
Is AI automation creating a hidden crisis for office workers that traditional economic data is failing to capture?