Fed's Daly says its likely the Fed will need to adjust policy in coming months

Fed's Daly says its likely the Fed will need to adjust policy in coming months

• Can’t wait for perfect clarity to act
• Tariffs unlikely to persistently boost inflation in a way that monetary policy would need to offset
• Labour market has softened, additional slowing would be unwelcome
• Monetary policy needs to recalibrate to match the risks to Fed's goals

Daly spoke in Alaska, at the Anchorage Economic Summit:

• "Inflation, absent tariffs, has been gradually trending down, and with a slowing economy and ongoing restrictive monetary policy, should continue to do so"
• "I would see additional slowing as unwelcome, especially since we know that once the labor market stumbles, it tends to fall quickly and hard"
• "All this means that we will likely need to adjust policy in the coming months."

I posted a wee 'preview' here:

Daly spoke earlier this week, notbaly shifting her stance to becoming more open to a rate cut. If there is a mouthpiece for Federal Reserve Chair Powell Daly is it, so her shift is notable:

• Fed's Daly says two FOMC rate cuts in 2025 seem appropriate

More of the same from Daly now, its quite clear there is movement amongst FOMC officials to become more amenable to rate cuts in the meetings ahead. September is firming up for a first rate cut!