San Francisco Federal Reserve President Mary Daly said Friday the weak February jobs report adds to a difficult policymaking environment.
In a CNBC interview, Daly did not commit to a position on interest rates, but said a softening labor market combined with inflation still running above the central bank’s 2% target complicate future decisions.
“This jobs market report has got my attention,” she said during a “Squawk Box” interview. “I don’t think you can look through this report, but I also don’t think you should make more of it than one month of data.:”
The Bureau of Labor Statistics on Friday reported that nonfarm payrolls declined by 92,000 in February, against expectations for a gain of 50,000 and third jobs decrease in the past five months.
With concerns rising about the labor market, the Fed cut its benchmark interest rate three times in the latter part of 2025 and has taken a more cautious approach since then with inflation still above target and threatened by the Iran war.
