US FOMC Member Daly Speaks

Good morning. It’s an honor to be part of this esteemed panel celebrating Ben Bernanke’s contributions to economics. I will discuss Ben’s time as Chair of the Federal Reserve.1 Let me begin by taking you back to March 2009. We were deep into a financial crisis that many feared would turn into another Great Depression. Jobs were vanishing by the millions, foreclosures were devastating neighborhoods, and the country was teetering, consumed by uncertainty and fear. Trust in institutions was fragile. Hope felt distant. And then something remarkable happened. Ben Bernanke, Chair of the Federal Reserve, stepped away from policy meetings, discussions with financial markets, CEOs, and global leaders, and sat for an interview with 60 minutes. The interview was double-length, largely unscripted, and reached 13 million viewers.2 post: FED'S DALY DOES NOT COMMENT ON OUTLOOK FOR MONETARY POLICY, ECONOMY IN REMARKS ON BERNANKE'S LEGACY AS FED CHAIR

Two Federal Reserve policymakers on Saturday said they feel the U.S. central bank's job on taming inflation is not yet done, but also do not want to risk damaging the labor market in the process. The remarks, from Governor Adriana Kugler and San Francisco Fed President Mary Daly, highlight the delicate balancing act facing the U.S. central bank this year, after lowering short-term rates by a full percentage point last year. Fed policymakers in December signaled they expect to reduce rates more slowly this year to bring inflation, ...

post: FED'S DALY: I'M NOT COMFORTABLE WITH INFLATION AT 2.5% BUT WE'RE BALANCING THAT WITH THE LABOR MARKET. post: FED'S DALY: THE INFLATION RISING WAS PART OF THE REASON YOU SAW RATE CUTS DIALLED BACK IN THE SEP. post: FED'S DALY: WE MIGHT END UP WITH FEWER CUTS THAN 2 OR MORE THAN 2 IF THE LABOR MARKET WEAKENS NOTABLY.

post: FED'S DALY: WE DON'T KNOW WHAT INCOMING ADMINISTRATION WILL DO SO FOR ME IT''S ABOUT THE DATA. post: FED'S DALY: RISKS TO THE OUTLOOK ARE EQUALLY BALANCED. post: FED'S DALY: THE DATA ON INFLATION ARE COMING IN SHOWING SLOWED PROGRESS RELATIVE TO WHAT WE WANTED; IT'S BUMPY. post: FED'S DALY: ULTIIMATELY I DETERMINED THE 100 BPS TO NOW WAS RIGHT PLACE, RECALIBRATION PHASE IS NOW OVER. post: FED'S DALY: MY PROJECTION IS IT WILL TAKE MANY FEWER RATE CUTS NEXT YEAR THAN WE HAD THOUGHT.

post: Fed's Daly: The labor market remains in a good place, is balanced https://t.co/iCh9wlXZ0r post: SAN FRAN FED'S DALY Q&A/STANFORD: US LABOR FORCE PARTICIPATION STILL LOWER THAN OTHER MAJOR ECONOMIES; IF WANT TO GROW FASTER THEN MORE NEED TO WORK #Daly #FederalReserve

post: FED'S DALY EXPECTS FURTHER RATE CUTS post: FED'S DALY ESTIMATES NEUTRAL RATE CLOSER TO 3% post: FED'S DALY: WOULD WANT TO BE OPEN-MINDED TO CONTINUE TO EASE POLICY IF INFLATION IS FALLING, EVEN IF ECONOMY IS STRONG