Daly emphasizes no change to dual mandate goals, but is open to using new methods to assess the economy

Odaily Daly stated that inflation should begin to slow, but there is considerable uncertainty regarding the economic outlook. Speaking at an event hosted by the Bank of Spain in Santander on Thursday, Daly said, "We continue to maintain policy at a slightly restrictive level, so inflation should decline." Daly indicated that tariffs and rising oil prices pushed inflation higher this spring following the US military action against Iran.

She praised the retreat in oil prices after a cease-fire agreement was reached between the US and Iran, calling it a "glimmer of relief," but warned that it remains unclear how the economy will evolve. She outlined several scenarios that could require different responses from the Federal Reserve and suggested that the Fed may need to respond more aggressively to persistent inflation.

Daly also noted that she is open to using different and novel approaches to assess the economy, but stressed that for the Fed's credibility, it is important not to change its dual mandate goals of promoting maximum employment and stable prices. (Jin Shi)