Mary Daly SF Fed President
- We have a lot of work left to do on inflation
- It's premature to think rate cuts are around the corner
- Far too early to declare victory
- We need to get inflation on a consistent trajectory to 2%, need more evidence to feel confident to adjust policy rate
- Any early signs that labor market could falter could also trigger policy adjustment
- Important to look at any rise in delinquency rates as an early sign of economic weakness
The message here is that they're looking for reasons to cut but they haven't found them yet. The question is: How many months of softening economic data would they need to see?
