Fed President Daly says oil shock delays inflation goal
San Francisco Fed President Mary Daly says the oil shock from the Iran war extends the timeline for lower inflation. Rates may stay steady until goals are met.
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San Francisco Federal Reserve President Mary Daly indicated that while the United States economy remains fundamentally solid, the recent energy price volatility sparked by the conflict involving Iran has extended the timeline for reaching the central bank's 2% inflation target. Daly noted that the labor market has steadied and current monetary policy is sufficiently restrictive to exert downward pressure on prices without causing undue harm to employment.
"We had work to do before we had the oil price shock; with the oil price shock, the work just takes longer."
