Chaincatcher<\/a>, signal that Daly continues to frame monetary policy as a balancing act between bringing inflation back to the Fed\u2019s 2% target and preserving labor market strength.<\/p>\nDaly\u2019s emphasis on balance builds on earlier statements where she has described policy as \u201cin a good place\u201d and argued the Fed can \u201cafford patience\u201d as it evaluates incoming data. In a prior speech, she said monetary policy must be calibrated carefully because \u201cprogress is not victory\u201d on inflation, and that uncertainty about both price pressures and employment requires a scenario based approach rather than a single forecast path.<\/p>\n
Daly\u2019s balancing act on inflation<\/h2>\n
In earlier public appearances, Daly has stressed that the Fed\u2019s dual mandate requires it to \u201cstay on our policy course if we\u2019re going to do our part to restore price stability,\u201d even as she acknowledged that inflation had been \u201ccoming in too high.\u201d At the same time, she has repeatedly warned that keeping rates \u201ctoo high for too long\u201d risks undermining employment, arguing that if restrictive policy causes mass layoffs, \u201cyou\u2019ve given people low inflation, but you\u2019ve taken their jobs,\u201d which she said is \u201cnot the dual mandate.\u201d<\/p>\n
That tension is visible in more recent commentary, where Daly has urged a \u201cmeasured, data\u2011dependent approach\u201d and insisted the Fed must \u201cwork on price stability without overreacting.\u201d Market participants have interpreted those remarks as a signal that the Federal Open Market Committee is likely to hold its policy rate in the current 5.25 to 5.50% range for longer, delaying rate cuts until there is clearer evidence that inflation is firmly on track to 2%.<\/p>\n
Implications for markets and policy path<\/h2>\n
Daly\u2019s latest message that price stability cannot be achieved by \u201charming the economy\u201d underscores why many officials remain wary of aggressive moves in either direction. Her stance aligns with projections from banks such as Goldman Sachs, which recently pushed back expectations for the first Fed rate cut to September 2026 and now sees inflation running near 2.9%, implying restrictive policy for longer and a tougher backdrop for risk assets.<\/p>\n
While Daly did not provide specific forecasts for growth, unemployment or the exact timing of any rate adjustments in the Jin10 summary, her comments suggest the Fed will continue to lean on incremental, data\u2011driven decisions rather than pre\u2011committing to a rapid easing cycle. For investors across bonds, equities and crypto, her insistence that the central bank must both \u201crestore price stability\u201d and avoid \u201charming the economy\u201d reinforces the idea that the Fed is steering a narrow path between renewed inflation and a policy induced downturn.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Mary Daly says the Fed cannot restore price stability by \u201charming the economy,\u201d underscoring a cautious stance on rates as inflation lingers above target. Summary San Francisco Fed\u2019s Mary Daly…<\/p>\n","protected":false},"author":1,"featured_media":30220,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-30219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=30219"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30219\/revisions"}],"predecessor-version":[{"id":30221,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/30219\/revisions\/30221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/30220"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=30219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=30219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=30219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}