Fed's Daly (2027 voter) says AI investment shock has people wondering if it will be inflationary
- If the Fed acts too quickly it could prematurely bridle things, if you act too slowly it could be unwelcome for citizens.
- Does not see any signs of lack of economic resiliency, despite above target inflation.
- Labour market has stabilised.
- Infation has risen on tariffs and oil price shock.
- Oil prices have come down, and hopes for relief.
- Monetary policy is slightlly restrictive.
- That should help inflation come down.
- There is a scenario where the Fed has to fight inflation.
- There is also a scenario where growth does not continue.
- Can't decide right now, can't give false guidance on rates.
- If Hormuz situation is resolved , that would be a good thing.
- Oil back down is good news for the consumers and the economy.
- Housing inflation has been coming down in the US.
- Does not want to react quickly when the world is changing quickly.
- Is a gradulist, wants to take things slowly.
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