San Francisco Federal Reserve President Mary Daly said on Friday, “high risks and ‘murky’ economic conditions mean Fed should practice gradualism.“
Needs ‘the boldness to wait’ given uncertain times.
Fed needs patience, ‘measured adjustments’.
Fed uncertain if current economic dynamics now are ‘remnants’ of pandemic recovery or a new normal.
Fed not certain if inflation is on track to 2%.
Fed unsure about length of policy lags.
Central bank policy debates are now centered on what constitutes sufficiently restrictive, and how long to maintain that stance.