Fed's Daly: Rate Decision Still Open, No Early Guidance as Inflation Remains Uncertain

According to Bloomberg Tech, on Thursday, June 4, San Francisco Federal Reserve President Mary Daly stated that while U.S. monetary policy is in a good position, the Fed maintains flexibility and has not ruled out rate hikes or cuts due to uncertainties in inflation, energy prices, and economic outlook. Daly emphasized the Fed will not provide premature forward guidance, as it could mislead markets. The Fed's next rate decision meeting is scheduled for June 16-17, marking new Chair Kevin Warsh's first meeting. Fed staff expects to hold rates steady, though officials increasingly stress all options remain on the table. The Fed's preferred inflation gauge, PCE price index, rose 3.8% year-over-year in April, the largest increase since 2023.
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