Fed's Daly (2027 voter) says underlying US economic fundamentals in a good place

ECONOMY:

• Underlying US economic fundamentals in a good place
• Consumers are still spending, businesses are still investing
• Labour market ‘settling at a good place’
• Longer-term inflation expectations are anchored

MIDDLE EAST:

• Question is how long oil will stay elevated, too early to know
• Says it is important that Fed doesn’t move around as much as news or markets do
• Says no one likes uncertainty or volatility

NEW FED CHAIR:

• Daly notes that there has never a huge directional shift with a new Fed chair
• Says Congress sets the Fed’s mandate, Fed’s job is to execute; Fed has to be apolitical
• Says there has always been pressure from Administrations on the Fed