Fed's Daly on Treasury Buybacks, Inflation, AI Demand

San Francisco Fed President Mary Daly said Treasury market signals indicate monetary policy is “in a good place” and there’s no evidence that preemptive rate cuts or hikes are an urgent issue. Her remarks imply the Fed can likely remain on course rather than make immediate policy moves, a moderate support for rate-sensitive assets.

Analysis

San Francisco Fed President Mary Daly said Treasury market signals indicate monetary policy is “in a good place” and there’s no evidence that preemptive rate cuts or hikes are an urgent issue. Her remarks imply the Fed can likely remain on course rather than make immediate policy moves, a moderate support for rate-sensitive assets.