San Francisco Fed President Mary Daly’s Policy Outlook

(Reuters) – In a recent interview, San Francisco Federal Reserve Bank President Mary Daly discussed recent economic reports indicating stronger-than-expected retail sales and a surprising rise in wholesale prices.

Daly expressed support for starting to ease monetary policy as early as next month. She noted that a softening labor market and an economy that is slowing—yet not stagnant—indicates that inflation, still above the Fed’s target, would justify a couple of rate cuts this year.

During her conversation with Fox Business’ Maria Bartiromo, which aired late Friday, Daly remarked, “Of course, we will wait to see the data and maybe it’ll be fewer, maybe it’ll be more, but ultimately, I think two remains a good projection.”

She emphasized the importance of not allowing concerns about potential inflation spikes to hinder support for the labor market.