Fed Is Focused on Its Job, Not What Treasury Is Doing, Daly Says

San Francisco Fed President Mary Daly said Fed policymakers are focused on their mandate rather than the Treasury Department’s plans for buying back more longer-dated debt. The remarks suggest limited incremental signals for the rates outlook beyond the Fed’s standard policy focus. Overall market impact is likely modest given the absence of new policy guidance or quantified changes.

Analysis

San Francisco Fed President Mary Daly said Fed policymakers are focused on their mandate rather than the Treasury Department’s plans for buying back more longer-dated debt. The remarks suggest limited incremental signals for the rates outlook beyond the Fed’s standard policy focus. Overall market impact is likely modest given the absence of new policy guidance or quantified changes.