Patience needed, measured adjustments Fed uncertain if current economic dynamics are ‘remnants’ of pandemic recovery or the new normal Fed not certain if inflation is on track to 2% Fed unsure about length of policy lags Debates are no centred on what constitutes sufficiently restrictive and how long to maintain that stance She’s not pushing
Policy is in a very good place Risk of over tighten and under tightening are balanced News on inflation has been fairly good It is far too early to declare a victory Not ready to say what that next move will be. Policy is significantly restrictive Not sure policy restrictive enough at current settings Need
Fed’s Daly San Francisco Fed Pres. Mary Daly is a speaking (nonvoting member): We stood at this week on rates in recognition that we are closer to our destination. We are holding rates steady to collect information to see if more is necessary. Holding rates this week doesn’t predict what we will do next. We
