Fed’s Daly said growing uncertainty among businesses could slow demand in the US economy

Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that rising uncertainty among businesses could dampen demand in the U.S. economy but does not justify a change in interest rates.

• business leaders in her district report heightened uncertainty about the economy and policy, which research suggests can reduce demand
• Federal Open Market Committee (FOMC) does not need to adjust rates when it meets next week
• believes current interest rates are appropriate
• believes the economy remains strong

Instead of reacting to short-term news or market fluctuations, she advocates for a more measured approach to evaluating economic conditions.

Her remarks align with comments from Fed Chair Jerome Powell, who also stated on Friday that policymakers do not need to rush any changes despite growing uncertainty.

• Fed’s Powell: U.S. central bank does not need to be in a hurry to adjust interest rates
• Q&A from Fed’s Powell: No need to redefine price stability

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Daly’s remarks from her LinkedIn post on Friday.

This article was written by Eamonn Sheridan at www.forexlive.com.