Fed's Daly: Premature to think rate cuts are around the corner

San Francisco Federal Reserve Bank President Mary Daly said on Friday that she believes the central bank has a lot of work left to do on bringing inflation back down to the Fed's 2% target and it’s too early to think interest-rate cuts are around the corner.

Key quotes

“We have a lot of work left to do on inflation.”

“It's premature to think rate cuts are around the corner.”

“Far too early to declare victory.”

“We need to get inflation on a consistent trajectory to 2%, need more evidence to feel confident to adjust policy rate.”

“Any early signs that the labor market could falter could also trigger policy adjustment.”

“Important to look at any rise in delinquency rates as an early sign of economic weakness.”

Market reaction

The US Dollar Index (DXY) is trading lower on the day at 103.24, as of writing.