Fed’s Daly: Soft landing in sight, but job not done yet

San Francisco Fed President Mary Daly expressed optimism in a series of Twitter posts, noting that the US economy is in a much “better place” compared to two years ago.

She highlighted that “inflation has fallen substantially” and the labor market has stabilized on a “more sustainable path.” According to Daly, the risks to the Fed’s dual goals of stable prices and full employment are now “balanced.”

However, Daly made it clear that Fed’s work to achieve a soft landing for the economy is not “not fully done”. She emphasized the importance of staying “resolute” to finish the task of stabilizing the economy, stating that the ultimate goal is to create an environment where people “aren’t worried about inflation or the economy.”