Fed’s Daly: Standing pat is the right policy for the moment

• We need to see how long to leave rates where they are
• Inflation is coming down. It’s bumpy and slow
• No urgency to adjust Fed funds rate
• We are making progress

There isn’t much of a signal in these comments.

• There is a real risk of cutting rates too soon
• If we lock inflation at this level, it’s a ‘toxic tax’
• We want to fully bring inflation back to 2%
• Economy is improving, there is a path where interest rates start to adjust this year, just not there yet
• Three cuts is a reasonable baseline this year
• Projection of 3 rate cuts is not a promise

This article was written by Adam Button at www.forexlive.com.