Daly Says Fed Needs to Guard Against Inflation 'Drift'

San Francisco Fed President Mary Daly said the “alarm bell” is not sounding yet on longer-run inflation expectations. The comment suggests no immediate need for a faster hawkish pivot on inflation risk, though it is not a policy decision. Likely modest near-term impact for rates expectations rather than a direct market-moving catalyst.

Analysis

San Francisco Fed President Mary Daly said the “alarm bell” is not sounding yet on longer-run inflation expectations. The comment suggests no immediate need for a faster hawkish pivot on inflation risk, though it is not a policy decision. Likely modest near-term impact for rates expectations rather than a direct market-moving catalyst.