Fed's Daly: Sooner Rather Than Later on Easing Monetary Policy

IconCryptoNewsTerminal Staff11 Jul, 2024

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Fed's Daly: Sooner Rather Than Later on Easing Monetary Policy

Federal Reserve Bank of San Francisco President Mary Daly stated that recent inflation and employment data suggest that the Fed should "move forward on policy normalization sooner rather than later." While not specifying a timeline, Daly indicated that the Fed could begin to "change policy" without immediately raising interest rates. This update follows Daly's previous comments in May, where she expressed support for a cautious approach to tightening monetary policy. However, the recent data, which includes a surge in inflation and a strong labor market, has prompted her to revise her stance. The Fed's policy shift aims to combat rising inflation, which has become a major concern for consumers and businesses. By reducing the level of monetary accommodation, the Fed hopes to curb inflation and maintain price stability.

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