SF Fed's Daly said it is too early to know if rates should be cut in July or not
SF Fed's Daly said it is too early to know if rates should be cut in July or not, in a Bloomberg interview, and will depend on the data. Inflation readings and employment data have been softer and she's looking to see if that's transitory or not. She's also looking to see if forces are slowing the economy in a meaningful way. Tariffs are seen as having a modest impact on growth and inflation, with uncertainty a headwind holding back the economy. So far there hasn't been much sign that tariffs are being passed through to the consumer. But there are some indications inflation expectations are becoming untethered. She doubts the Fed is taking policy signals from the markets. She monitors the markets, and gets information from other sources. Daly is a dove and does not vote this year or in 2020.