Updated
Updated · Bloomberg · Jul 2
Fed's Daly Says Inflation Should Ease as Rates Stay Slightly Restrictive
Updated
Updated · Bloomberg · Jul 2

Fed's Daly Says Inflation Should Ease as Rates Stay Slightly Restrictive

3 articles · Updated · Bloomberg · Jul 2

Summary

  • Mary Daly said Thursday that inflation should start to slow, while warning that the economic outlook still carries large uncertainties.
  • At a Bank of Spain event in Santander, the San Francisco Fed president said current policy remains in a slightly restrictive position, which should help bring inflation down.
  • Her remarks suggest the Fed still sees existing rate settings as tight enough to cool prices, even as uncertainty clouds the path for growth and inflation.

Insights

As a new Mideast war drives global inflation, can the Fed's policy tame prices without triggering a major economic downturn?
With geopolitical shocks becoming a constant, is the Federal Reserve's 2% inflation target still a realistic goal for the economy?