Fed's Mary plus Daly speaking on Bloomberg TV interview
The San Francisco Fed Pres. Mary Daly is on Bloomberg TV saying:
- Rate cuts this year have put policy in a very good place
- The current policy rate is appropriate for economy that we have now
- We can keep the stance until inflation is back at target
- Risks include slower global growth, Brexit, trade issues
- Seems like there is still room to run in the labor market
- If global growth gets slower, trade uncertainty is prolonged, that could materially change outlook
- Economy is in a good placein part due to Fed's rate cuts
- She's open to the idea that risks are on the downside
- Fed is very focused on getting inflation higher
- Fed must get inflation to 2% for the next downturn
- We are surprised how low jobless can go without inflation
- It's hard to know reasons for slowing and China's economy
- Fed must manage payment system risks from climate change
Daly is towing the Fed line that the economy and rates are at a good place but is throwing a cautionary spin on inflation
