US Federal Reserve's Daly Suggests Early Monetary Policy Relaxation
According to Odaily, Mary Daly, a representative of the US Federal Reserve, she expressed her growing confidence in the need for early relaxation of monetary policy during a phone conference with the media. This belief is based on recent inflation and employment data. 'Considering the information we have received so far, including data on employment, inflation, GDP growth, and economic prospects, I believe some policy adjustments may be necessary,' Daly stated. However, she declined to specify when she believes it would be appropriate for the Federal Reserve to cut interest rates.Daly has publicly stated that she does not believe prescriptive forward guidance, including the number and timing of rate cuts, is the best approach at this critical time. She pointed out that the risks faced by the Federal Reserve's dual goals of price stability and full employment have been better balanced. She believes that monetary policy is taking effect, but there is still 'considerable uncertainty' about how the economy will develop.