San Francisco Fed President Mary Daly stated in a post on platform X that the economic growth forecast is robust, and the labor market is stabilizing, with inflation expected to improve within the year. However, numerous uncertainties remain, and both aspects of the Federal Reserve's dual mandate face risks.
Daly also emphasized that the Federal Reserve must proceed with caution when calibrating policy to achieve the dual goals of price stability and maximum employment. "Fortunately, policy is in a favorable position to respond to any economic developments," she noted.
Furthermore, she indicated that for the Fed to determine its next steps, it must look beyond the surface-level data, adopt a long-term perspective, and prioritize listening to the voices of businesses, households, and communities to gain a comprehensive understanding of the economic situation.
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