NEW YORK —San Francisco Fed President Mary Daly emphasized Tuesday on the importance of maintaining the job market while progressing towards the 2% inflation goal. Moreover, she notes that the Federal Reserve's inflation and employment goals are currently in balance.
Daly remarked during a seminar at NYU Stern School of Business, that it is imperative to remain vigilant and effectively evaluate the economy, while balancing both of our mandated objectives that involve delivering on 2% inflation while ensuring that the labor market remains in line with full employment.
Daly emphasized that the monetary policy remains limited even with last month's 50-basis-point rate drop, exerting downward pressure on inflation. She pointed out that there is less inflationary pressure coming from the labor market of late. Moreover, she adds that the high labor force participation among prime-age workers could potentially spur economic resiliency.
Also she feels compared to recent memory, the current expansion is still relatively young. Her remarks coincide with the Federal Reserve negotiating its dual goals of full employment and stable prices amidst the evolving economic circumstances.
