Insights from Mary Daly on the US Economy and Monetary Policy

FED member Mary Daly shared insights regarding the state of the US economy and monetary policy, highlighting the need for stability and careful decision-making amidst uncertainty.

Daly reported that the economy is performing well with a strong labor market and urged patience regarding inflation progress. He cautioned against premature optimism, stating that inflation remains volatile despite a gradual decrease.

When questioned about potential interest rate cuts in 2025, Daly remarked, “The world is full of uncertainty.” He emphasized that monetary policy should stay tight until sustained progress in inflation is observed. He stressed the necessity of closely monitoring economic indicators before enacting policy changes, stating, “We want to be cautious before making the next adjustment.”

Daly further stated that the Fed would not overlook labor market dynamics when addressing inflation issues. “We need more data; we don’t want to rush to an answer that we’ll regret,” he explained.

Regarding fiscal policy, Daly acknowledged the uncertainties surrounding the new U.S. government’s economic plans, adding, “We don’t know the scope, scale, or timing of new policies.” However, he assured that the current monetary policy framework is robust and can adapt as needed.

Daly also discussed the cryptocurrency sector, adopting a balanced approach by recognizing its potential while calling for cautious regulation. “Cryptocurrencies are a growing sector, and we don’t want to stifle innovation out of fear,” he noted.

> This is not investment advice.