Fed's Daly says tariff impact on inflation beginning to fade
From the original
Daly's comments add a somewhat more balanced tone to recent Fed commentary, acknowledging tariff driven price pressures while also flagging early signs those effects are fading, a nuance that could support market expectations for the Fed to stay patient rather than move toward hi
Related speeches
4 itemsMore re Fed's Daly - supported decision to hold rates steady at July FOMC meeting
Fed's Daly: In the US, there's exceedingly strong investment growth
UBS On-Air: Paul Donovan Daily Audio 'Self-inflicted slowdowns and the Fed'
The desk interprets Powell's remarks as indicative of a shift in the Fed's policy approach, signifying that the impact of trade tariffs on inflation and economic growth has reached a threshold that warrants serious consideration. Per the full note [source], Powell's acknowledgment of rising inflation alongside stagnant growth suggests a tailored response from the Fed, likely leaning towards beneficial rate cuts rather than aggressive interventions. This aligns with broader market expectations, where sentiment surveys reflect consumer anxiety about inflation, with over a third expecting rates to exceed 10%. With no immediate high-impact calendar items to influence trade, monitoring the Fed's signals moving forward becomes crucial.