Fed's Daly Says Housing Inflation Eases, But Policymakers Should Stay Gradual

Federal Reserve Bank of San Francisco President Mary Daly said Thursday that the U.S. central bank should maintain a gradual approach to adjusting interest rates, emphasizing that policymakers still require clearer inflation and labor data before making further policy changes. Daly, who identifies as a "gradualist," cautioned that while rapid rate cuts could hinder economic growth, delaying action might also harm the public as inflation remains a concern.

Daly noted that recent inflation metrics have been impacted by tariff adjustments and oil price shocks, though housing inflation has recently begun to ease. She urged the Federal Reserve to continue seeking improved economic data without altering its underlying objectives, warning that policymakers should avoid changing their targets midstream while monitoring for potentially persistent price pressures.