Daly Reiterates Support for Fed's Pause on Interest Rate Hikes

San Francisco Federal Reserve Bank President Mary Daly expressed her support for the Fed's decision to hold interest rates steady at its recent meeting. In a speech in New York, she emphasized that inflation remains above the central bank's 2% target and that more data is needed before making any further moves.

Daly pointed out that determining whether current inflation is driven by temporary supply shocks or a more entrenched psychology will be crucial. She stated that the Fed should 'carefully watch the incoming information' while remaining prepared to take action if necessary.

The Federal Open Market Committee (FOMC) has paused its aggressive rate-hiking campaign, holding the federal funds rate target range steady at 5.25% to 5.50%. Markets are closely watching for any signs of another rate hike in September, with Daly's comments reinforcing that the decision will depend on forthcoming economic data.