Fed’s Daly: The economy is clearly in a better place

Federal Reserve Bank of San Francisco President Mary Daly, in a post on social media platform X, said that the economy is clearly in a better place, inflation has fallen substantially and the labor market has returned to a more sustainable path. 

Additional comments:

• Data dependence does not mean being data reactive, but looking forward as the information comes in and projecting how we think the economy will evolve. 
• We must stay vigilant and be intentional, continually assessing the economy and balancing both of our mandated objectives of delivering on 2% inflation while ensuring that the labor market remains in line with full employment. 
• Households, businesses, and communities want a durable economy, with sustained growth, a good labor market, and low inflation. 
• The work to achieve a soft landing is not fully done and we are resolute to finish that job.

Market Reaction:

The remarks do little to provide any meaningful impetus to the US Dollar (USD), which stands firm near its highest level since early August amid bets for a less aggressive policy easing by the Federal Reserve (Fed).