Mary Daly, Interview: Fox Business

Fed Funds

“The number today on the jobs report was a “wow” number, but the trend was not surprising.  We knew that the labor market was strong, has been strong, despite the fact that the economy overall has been slowing. And, so right now I see the December SEP that we had in our last meeting in 2022 as being a good indicator of where policy is at least heading.  But I’m prepared to do more than that, if more is needed.”

Pause

“Well really it depends on inflation. And, right now my outlook for inflation is for it to continue to come down, but if you think about getting to two percent that’s likely to take longer than just this next year.  And so we really will have to be in a restrictive stance of policy until we truly understand and believe that inflation will come squarely back down to our two percent target.  That’s what Americans are depending on and that’s what the Fed is united and resolute in providing.”

Inflation

“I think it’s far too early to declare victory and even think about peaking.  We’re in the early stages.  You see the data in many sectors is volatile.  We have China reopening.  I think we just have to be thoughtful and look at the data, look at the information and be cautious about declaring a victory or even a peak earlier than we see real evidence that we’re there yet.  So, my mind is a hundred percent on bringing inflation back down to two percent over time and right now I see some positive signs but far from a victory.”