San Francisco Fed President Daly Downplays Fed Statement Disagreements

San Francisco Federal Reserve President Mary Daly has downplayed disagreements over the Federal Reserve's statement, suggesting she would not vote against it like some of her colleagues. According to Jin10, Daly emphasized that the wording of the statement is less important than the actions taken, noting that the real signal from the meeting was the unanimous agreement on the decision. Last month, three officials objected to language hinting at future rate cuts, arguing that the uncertainty from energy shocks and the Iran war made a signal of 'rates could rise or fall' more appropriate. Daly, who does not have voting rights this year, stated that the public understands the Fed's responsibility for price stability. She mentioned there are no signs that energy prices are pushing medium or long-term inflation expectations higher. "It's too early to judge now. If the conflict ends, oil prices fall, and it doesn't spread to the broader economy, the basic dynamics before the conflict are expected to return," she said. Daly is committed to achieving a 2% inflation target but cautioned against overreacting to the expected duration of energy shocks. She noted that policy is 'slightly tight,' and if the war is resolved, it will exert downward pressure on inflation; the labor market remains stable without generating inflationary pressure.