Mary Daly, president of the San Francisco Federal Reserve, offered a measured but optimistic read on the US economy during her appearance at the Bloomberg Tech conference on June 4. The labor market, she said, is “resilient” and has “stabilized,” even as inflation continues to shift in ways that demand close attention.
Her comments arrive at an interesting moment. The federal funds rate target sits at 3.50%-3.75%, a range the Federal Open Market Committee has held steady through recent meetings.
The inflation picture is getting more complicated
Daly noted that price pressures are increasingly driven by energy and food costs, partly linked to geopolitical tensions including the ongoing Iran conflict.
Daly acknowledged this tension without tipping her hand. She said the Fed is “prepared to respond either way” on interest rate adjustments, a deliberately vague statement designed to preserve maximum flexibility.
