(Bloomberg) -- Federal Reserve Bank of San Francisco President Mary Daly said inflation is coming down in a way that bolsters confidence it’s on its way to 2%.
“Inflation is coming down and it’s doing so in a way that confidence is growing that we’re getting nearer a sustainable pace of getting inflation back down to 2%,” Daly said Monday at an event in Utah.
While the economy is slowing and policymakers should pay attention to labor market risks now as well as inflation, “we have a lot more information to get before we can make any real determination,” the San Francisco Fed chief said.
Daly declined to specify when the central bank would start cutting rates or how many rate cuts there will be.
“There’s just a time period where some normalization in policy is a likely outcome but how likely it is depends on the data that come in, not where we’re standing today,” Daly said at the Fortune Brainstorm Tech 2024 conference.
Daly, who votes on monetary policy this year, said risks to the labor market and price stability are coming into better balance, but the Fed remains committed to its goal of 2% inflation. Officials have kept interest rates unchanged at a 23-year high for the past 12 months as they wait for inflation to cool.
A report last week showed price gains slowed more than forecast in June, adding to bets that the US central bank will start cutting rates as early as September.
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