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US Stock Market: Fed's Daly Backs Steady Rates, Says More Inflation Data Needed Before September Decision
Daly said the central bank should wait for more inflation data as three officials dissented for higher rates and other policymakers urged vigilance.
- San Francisco Federal Reserve Bank President Mary Daly said Wednesday she was "completely supportive" of the Federal Open Market Committee decision to hold interest rates steady between 3.5% and 3.75%.
- Daly noted "good reasons" to believe supply-driven shocks from the Middle East will not cause lasting inflation, though The Fed must remain "vigilant to watch the information as it comes in, but be very prepared to take action."
- Federal Reserve Governor Lisa Cook stated she is "prepared to act by raising rates, if necessary," citing persistent inflation risks, while Minneapolis Fed President Neel Kashkari dissented from the rate hold.
- Markets expect The Fed could act as soon as September but are pricing in higher odds for an October move, according to CME Group's FedWatch, as The Fed remains focused on price pressures running ahead of its 2% goal.
- With five years of above-target inflation, risks grow that price pressures could become entrenched in wage-setting behavior. Daly noted businesses possess limited pricing power, though The Fed must determine whether current inflation stems from temporary supply shocks before September's meeting.
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The Economic TimesReposted by 
Times of India
Times of IndiaUS Stock Market: Fed's Daly backs steady rates, says more inflation data needed before September decision
San Francisco Fed President Mary Daly backed the Federal Reserve's decision to keep interest rates unchanged, saying policymakers need more evidence before deciding whether inflation warrants further action. She stressed that upcoming economic data will be key to the Fed's September policy decision.
·Mumbai, India
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Fed's Daly says central bank was right to hold rates steady at July ...
·London, United Kingdom
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High Treasurys rekindles concerns about inflation in the U.S. and increases investor caution in global markets
·São Paulo, Brazil
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Coverage Details
Total News Sources13
Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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