SF Fed President Mary Daly
- Recent inflation readings more encouraging but hard to now if on track to price stability
- We have made a lot of progress on inflation, still work to do
- Nearer to a point where benign outcome on labor market could be less likely
- Must fully restore price stability without a painful disruption to the labor market
- If inflation falls more slowly than expected, policy rate must sty higher for longer
- If there are gradual declines in inflation, slow labor market rebalancing then the Fed an normalize over time
- At this point, we have a good labor market not a frothy one
Not even this dove is thinking about cutting rates yet. There will be a Q&A after the speech.