US Fed’s Daly says no single most-likely path for rates

SAN Francisco Federal Reserve Bank President Mary Daly on Monday said that unless the Iran conflict resolves quickly and the Fed can simply “look through” a temporary increase in oil prices, it is not clear what the Fed’s next move on interest rates will need to be.

“There is no single most-likely path,” Daly said in a post on LinkedIn, noting a protracted conflict could increase the risk of higher inflation but also a weaker labour market, putting the Fed’s two goals in tension. “With policy in a good place, we need to remain flexible, able to respond to rapidly evolving risks.” REUTERS