Daly: Fed Should Show “Humility” About Economic Predictions While Balancing Dual Mandate

San Francisco Fed President Mary Daly believes the Federal Reserve has achieved a good balance between its dual mandates of employment stability and price control.

During a weekend economics conference, she stressed the importance of adapting monetary policy based on evolving conditions while keeping both objectives in focus.

This comes after the Fed’s recent decision to maintain interest rates at 4.25%-4.5%, with officials showing divided opinions on future rate cuts.

While some Fed officials like Christopher Waller suggest rate cuts could begin as early as July, Daly sees fall as more likely. She also cautioned that central banks should communicate with humility about economic uncertainties.