Daly: Steady Through Change: In Policy, Business, and Life | Metals Mine

  • Daly: Steady Through Change: In Policy, Business, and Life

    From frbsf.org

    Good afternoon. Thank you, Spence, for that kind introduction. It’s wonderful to be here today. I am honored to be speaking with a wide array of audiences—the participants of the 35th Annual Spencer Fox Eccles Convocation, members of the Utah Chapter of the National Association of Corporate Directors, and members of the broader Salt Lake community. Thank you so much for having me. I last visited Utah back in April. The new Administration had begun to provide early details of its policy initiatives, and businesses, households, and communities were working hard to understand their impacts. Uncertainty was a common ... (full story)

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ntrpy
Sep 24, 2025 5:25pm
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Daly | Steady Through Change: In Policy, Business, and Life
• Centrist positioning, cements her as a neutral governor factionally going forwards; cautious, data dependant, Powell-esque.
• Main theme of speech was "steadiness"; explicitly rejected notion of "pre-set course" and instead stressed a "meeting-by-meeting" approach.
• Justified support for recent cut; "Growth, consumer spending, and the labour market had slowed", shows willingness to act on soft data.
• Dismissed inflation uptick as narrow & primarily driven by tariff-affected sectors; demonstrating willingness to look through noise.
• Door remains open for "further policy adjustments" stating that they'll be needed; declaring she is not in the "one-and-done" camp.
• Daly's speech strengthens Fed's hand, requires clear evidence of slowdown before she'll adopted an accelerated rate cutting view.
• Current base case requires Fed to be force to cut due to weak labour market; Fed however feels no such pressure to do so.
• Increases chance slightly of "soft landing" scenario if economy can withstand higher rates for longer without collapsing.
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